BUS 1000 Part 1
Benefits of technological changes
1. lower costs and improved productivity, security, and communications 2. allows us for telecommuting and teleconferencing
Types of economic systems
1. planned (or controlled) economies 2. Free market economies 3. Mixed economies
Advantages of cost-based pricing
1. Easy to calculate and administer 2. Requires minimum information
Example of equipment
1. Factories 2. Warehouses 3. Office buildings 4. Heavy equipment 5. Computers 6. Printers 7. Copiers
Marketing strategy
1. Target market 2. Marketing mix
Example of advertising-based models
Ads on Yahoo!
Manufacturer's brand (national brands)
Brand created by producers
Example of transnational strategy
Coca Cola and Dell sell the same product but change the packaging depending on the country
Products of Production Era
Model T Ford
Job description
a formal statement that summarizes what the employee will do in that role, defines job objectives, job responsibilities, and conditions of the job
Example of exchange through intermediary
eBay
Operational requirements of a partnership
minimal legal requirements
Compensation
payment for work performed
If Ecuador has a dispute with France over the importation of bananas, from which agency can Ecuador seek arbitration? a. NAFTA b. APEC c. ASEAN d. WTO e. GATT
d. WTO
Maslow's hierarchy of needs a. is a theory of why people are motivated b. uses three factors to compute the motivation of a person in a situation c. was developed to address the Hawthorne effect d. was displaced when Theory Z was introduced
d. was displaced when Theory Z was introduced
Patricia often acts without thinking of the consequences. She usually comes home late and even skips her turn to do household chores. When someone asks her if she thinks what she does is right or wrong, she says she doesn't really know and she doesn't really care. Patricia's behavior can be classified as ________. a. moral b. unethical c. ethical d. Judeo-Christian e. amoral
e. amoral
Sites like Kickstarter and Indiegogo have popularized a type of start-up financing known as ________, in which entrepreneurs post a detailed explanation of their projects or businesses on the site and ask for financing. a. small business grants b. angel investment c. venture capital d. bootstrap financing e. crowdfunding
e. crowdfunding
Labor is a factor of production that refers to any physical or ________ work people contribute to a business's production. a. technology b. unionized c. entrepreneurial d. emotional e. intellectual
e. intellectual
Jason puts in long hours finalizing his presentation because he takes a great deal of satisfaction knowing that he has done his best work. In this case, Jason is motivated by _________. a. physiological needs b. hygiene factors c. extrinsic motivators d. instrumentality e. intrinsic motivators
e. intrinsic motivators
Which of the following refers to an interconnected system of different demographic factors? a. economic environment b. social networking c. political environment d. cultural environment e. social environment
e. social environment
Emma bought an MP3 player and a portable DVD player. These products are called goods because ________. a. they are good at increasing a company's profit margin b. they are produce in an economical offshore factory c. they can be sold either in a store or online d. they do a good job of satisfying a customer's need e. they are physical or tangible products
e. they are physical or tangible products
Socioeconomic factors that must be considered by international companies include all of the following EXCEPT _________. a. cultural behaviors b. income distribution c. birthrates d. ethnicity e. unit labor cost
e. unit labor cost
A(n)_________ organization consolidates decision making in the hands of a few people. a. horizontal b. flat c. circular d. inverted e. vertical
e. vertical
What are the layers of money supply?
1. M-1 2. M-2 3. M-3
Measurable
Able to be measured, quantifiable
Example of compensation
Direct financial payments, salaries, wages
Corporate culture is the set of sports and extracurricular activities promoted at work True or False
False
Which step of new product development do companies skip sometimes?
Market Testing
Examples of network organizations
Reebok and Nike
Product line length
The number of items in any given product line
Job specifications
The skills, education, experience, and personal attributes that candidates need to possess to successfully fulfill the role
Ethics is the study of the general nature of morals and the specific moral choices a person makes True or False
True
Example of a vertical merger
Walt Disney and Pixar or eBay and PayPal
Example of intrapreneurs
Whirlpool encourages employees to create ideas for the company
personal ethics
a set of principles that guide the decisions you make in your life
depression
a severe or long recession
_________ plans depend on daily or weekly schedules and focus on specific departments or employees. a. Operational b. Tactical c. Strategic d. Contingency e. Vision
a. Operational
Stephanie and Nicole are two fashion-conscious friends who decide to open a clothing store. They each contribute capital and share the running of the business. Which term best describes their business relationship? a. Partners b. Employer and employee c. Owner and investor d. Cooperative e. Stockholders
a. Partners
whistle blower
an employee who reports misconduct most often to an authority outside of the firm
domestic partner benefits
benefits provided to an employee's unmarried partner
work/life benefits
benefits that help an employee achieve a balance between the demands of life both inside and outside the workplace
What is an example of market economy?
captialism
marketing objective
clearly stated goal to be achieved through marketing activities
In small companies, officer positions must be...
combined
bonuses
compensation based on total corporate profits
To make good decisions a manager must have...
conceptual skills
A business owner has no control or even input into your...
conduct outside the office
Venture capitalists
contribute money to a business in return for some form of equity
government spending...
creates jobs and helps the economy
Playground design
creating a "safe" space to bring out ideas that normally one might just keep to himself or herself
A country's launching of a government-owned telecommunications satellite is an example of investing in ________. a. Private Capital b. Entrepreneurialism c. Natural Resources d. Infrastructure e. Labor
d. Infrastructure
Which of the following is an advantage to starting a business? a. Lower stress level b. Avoidance of unpleasant work tasks c. Financial security d. Opportunity to gain an understanding of all aspects of a business
d. Opportunity to gain an understanding of all aspects of a business
positive psychology
research that suggests that happiness itself is a result of living ethically
Unemployment
seeking income due to job loss
money supply
the combined amount of money available within an economy
Information Technology (IT)
the design and implementation of computer-based information systems
objectives
the short-term targets that are designed to help achieve these goals
Bundling
two or more products that usually complement one another are combined and sold at a single price
Example of peer-to-peer exchange
music files
stockholders
people who own stock in a company
Elton Mayo studied
physical influences on the workplace as well as psychological aspects
When the supply curve shifts to the right it has a...
positive impact
Data mining
process of exploring and analyzing the data mart to uncover the relationships and patterns that will help a business
Instrumentality
refers to the idea that the outcome of a situation is related to rewards/punishment
Intellectual property
refers to the ownership of ideas and creative works in form of patents, copyrights, and trademarks
Real capitol
refers to the physical facilities used to produce goods/services
Virtual teams need to do what to be successful?
1. Need to meet face-to-face 2. Set standards for communication (need to respond in 2 hours)
Extending
Extends the capabilities of those working to achieve goals
product
good or service
local business
usually one of a kind, serves a limited surrounding area
Example of population changes
increase of young people= more coffee
Once long-term goals and objectives have been determined, middle management generates ________. a. tactical plans b. resource evaluations c. incentive programs d. abstract aims e. strategic plans
a. tactical plans
Which of the following is NOT a part of a typical management development program? a. job rotation b. workforce profiles c. coaching program d. understudy program e. action learning
b. workforce profiles
_________ is the process of performing research and analysis of a business to uncover any hidden problems associated with it. a. Risk auditing b. Business assessment c. Demographic surveying d. Due diligence e. Valuation
d. Due diligence
Which of the following is among the disadvantages of small business ownership? a. Steep learning curve b. Family values c. Lifestyle uncertainty d. Heavy time commitment
d. Heavy time commitment
_______ skills enable a manager to solve problems, formulate processes, and understand the relationship between ideas, concepts, patterns, and symbols. a. Decision-making b. Technical c. Manual d. Interpersonal e. Conceptual
e. Conceptual
Apple's selling iPhones to customers in Africa, Asia, and Europe is an example of the globalization of ________. a. offshoring b. Manufacturing c. Outsourcing d. Production e. Markets
e. Markets
Globalization is a controversial subject for many people because__________. a. it allows U.S companies to import and export goods from anywhere in the world b. it increases the cost of goods and services in the United States c. it stabilizes the value of the U.S dollar d. it allows companies of any size to compete globally e. it results in the closing of some U.S manufacturing facilities
e. it results in the closing of some U.S manufacturing facilities
complementary goods
products or services that go with each other
Taxation of an S corporation
profits and losses pass through owner's personal tax return
Crowdsourcing
refers to the practice of using information solicited on social media to make decisions
Ethics
refers to the study of the general nature of morals and of specific moral choices a person makes
coincident indicators
statistics that reflect how the economy is currently doing
job rotation
the employee rotates through different departments to learn firsthand the various aspects of the business
Companies document their philosophies through:
1. code of ethics 2. mission statement
Which of the following is an example of a real capitol? a. personal savings b. a manufacturing plant c. computer software d. natural gas e. a business loan
b. a manufacturing plant
Which of the following has reduced as a result of globalization? a. Volume of goods and services crossing national borders b. Foreign exchange transaction c. Procuring product inputs from all over the world d. Differences in material culture between national economies e. Deregulation of markets
d. Differences in material culture between national economies
first-line managers
people who directly supervise lower-level employees, help run the business
B2B market structure
1. Few customers 2. Large-volume purchases 3. Geographically concentrated
Successful entrepreneurs are:
1. Innovative 2. Risktakers 3. Motivated to succeed 4. Flexible and self-directed 5. Good with people 6. System thinkers
Planning includes...
1. Setting goals 2. Developing strategies 3. Determining resources
Conduct market research and develop a marketing plan
Conduct research on profitability of a potential business
Sweden, with its high taxes and widespread government programs, is a good example of a market economy. True or False
False
The CIO is the director of IT and reports to the CFO True or False
False
The M-1 money supply measure consists of currency, traveler's checks, and checking accounts. True or False
False
The Six Sigma initiative is focused on improving communication True or False
False
Non-profit and public service advertising
Focuses on promoting organizations
Price of substitute goods
If there are other equally comparable goods that are available at a lower price, the supply of goods will be affected
cause and effect diagram (fishbone diagram)
Illustrates all of the contributing factors in the product design that might lead to faulty production
Example of point of purchase displays
Items by the cash stand
Responsibilities of each partner
Outline the responsibilities of each partner from the beginning to reduce potential conflicts, unless otherwise specified any partner can bind the partnership to any debt or contract without the consent of the other partners
Example of synergy
Pfizer acquired Wyeth so that they could have Wyeth's new vaccines and biotechnology medicines
Example of lifestyle entrepreneurs
RV Water Filter Store, allows owner to travel the world
Promotional mix
The strategic combination of promotional tools used to reach targeted customers to achieve marketing objectives
An agreement in which a domestic company's intangible property may be sold or made available to a foreign company in exchange for a royalty fee is called a ________. a. License b. Turnkey Project c. Franchise d. Strategic Alliance e. Wholly-Owned Subsidiary
a. License
supply
availability of that item
Period of existence of an S corporation
separate entity; existence not dependent on owners, founds; ownership transferred easily
CRM cycle
1. Marketing 2. Sales 3. Feedback 4. Support 5. Repeat
types of economic indicators
1. leading indicators 2. coincident indicators 3. lagging indicators
Manufacturer's agents
Represent two or more manufacturers through contracts and work to sell their products
Direction sharing
Communicating an organization's higher-level goals, such as vision, mission, values, and strategy
Price leader
When a firm charges a different price and all other firms will follow
ethnocentrism
a belief that one's own culture is superior to all other cultures (disaster when doing international business)
mixed economies
a blend of market and planned economies
Example of changes in income levels
a job loss, tuition increase, promotion
Economic conditions of other countries can
effect the U.S
technical standard/bureaucratic rule
effectively shutting out the import from a domestic market
safety and security
safe and stable place to live and work
Threat of retaliation argument (bargaining chip)
says that if a trading partner increases its trade barriers on your exports, or fails to reduce trade barriers as you reduce yours, than an uneven, unfair playing field is created
situational ethics
is based on the idea that people make decisions based on specific situation instead of universal laws
All of the following statements concerning limited liability companies (LLCs) are true EXCEPT: a. They can continue operating if an owner dies. b. They issue stock. c. They are not required to have as many meetings as C corporations. d. They are an attractive company type for new and small businesses. e. They are not subject to double taxation.
b. They issue stock.
Social media monitoring
keeping watch on the external messages and information being spread about their products in cyberspace
The U.S economy is the
largest economy
Taken together, the iPod and iTunes are_________. a. substitute goods b. complementary goods c. competitive goods d. monopolistic goods e. intangible goods
b. complementary goods
Which type of plan is designed to keep an organization running in the event of a disruption? a. tactical b. contingency c. strategic d. operational e. time-management
b. contingency
Goods are products a business sells like a. haircuts b. conveyor belts c. car insurance d. health care
b. conveyor belts
Example of data
number, word, image/sound
Shareholders
owners of the company
picket
parade in front of the employer's business carrying signs about the dispute
Which of the following should a business owner create monthly? a. marketing plans b. financial statements and budgets c. mission statement d. risk analysis e. operational plans
b. financial statements and budgets
Which is not an example of secondary data? a. Census data b. Customer feedback on Twitter c. Focus group results d. Data collected from company sales report
c. Focus group results
Which theory best describes the phenomenon that employee motivation and productivity are positively impacted by attention and recognition? a. Time-motion studies b. Motivator-hygiene theory c. The Hawthorne effect d. Maslow's hierarchy of needs e. Theory Y
c. The Hawthorne effect
Growth entrepreneurs
strive to create fast-growing businesses and look forward to expansion (aka gazelle business)
incentive-based payment
structure that has a lower base salary enhanced with commissions
Data marts
subsets created to isolate one product or department in a data warehouse
Risktakers
take calculated risks, considering the likelihood of success before deciding whether to take a personal risk
Tariffs
taxes imposed on imported goods or services
hostile takeovers are caused by
tender offer
Product differentiation
the creation of real or perceived product differences
General partnership
the default arrangement for a partnership and is the simplest partnership to form
identity theft
the illegal gain and use of personal information
Valence
the importance that the individual places on the expected outcome of a situation
federal funds rate
the interest rate banks charge other banks when they borrow funds overnight from one another
the number of substitutes for a certain good or service determines...
the level of competition
market
the mechanism by which buyers and sellers exchange goods and services
Which of the following statements is NOT true of a market economy? a. The pricing of goods is determined by what sellers wish to charge and buyers wish to pay. b. The government may supply some goods or services. c. The economy is defined by a freedom of choice for both buyers and sellers d. The system encourages private ownership of resources. e. The individual makes his or her own economic decisions.
c. The economy is defined by a freedom of choice for both buyers and sellers
In a business environment, the term "minority" applies to more than just people of different ethnicities. Minority groups represent all of the following EXCEPT___________. a. a person's culture b. a person's sexual orientation c. a person's political party d. a person's disability e. a person's gender
c. a person's political party
Donald was just assigned supervisory responsibilities for two problem employees. Donald tends to use tight controls and closely monitors employees' work. He believes threats are the best motivation tool out there. Which of the following best describes Donald's leadership style? a. visionary b. democratic c. autocratic d. affiliative e. laissez-faire
c. autocratic
Branding benefits__________. a. only sellers b. only resellers c. both buyers and sellers d. only buyers e. neither buyers nor sellers
c. both buyers and sellers
Profit
when a company's revenue is greater than its expenses
A downward moving GDP indicates that _____. a. the number of unemployed people is decreasing b. more goods and services are being produced and sold c. fewer goods and services are being produced and sold d. the number of products created in a country by non-domestic companies is increased e. businesses are doing well
c. fewer goods and services are being produced and sold
The following are all functions of a chief information officer (CIO) EXCEPT ____________. a. processing information b. balancing the benefits of technology against the costs c. overseeing the accounting office d. creating business opportunities e. updating computer systems
c. overseeing the accounting office
To understand where _____ businesses are concentrated, you need to divide them into the goods-producing sector and the service-producing sector. a. innovative b. profitable c. small d. struggling
c. small
Unethical behavior is defined as behavior that does not conform to a set of approved standards of ________ behavior. a. amoral b. diplomatic c. social d. international e. religious
c. social
Which of the following is an example of a situational factor that could affect a consumer's buying decision? a. the buyer's social class b. the buyer's motivations c. the layout of the store d. the price of a product e. the status implication of a product
c. the layout of the store
The discount rate is what is charged when banks borrow emergency funds from each other. True or False
False
Job sharing
In this arrangement two employees work part-time sharing one full-time job
Characteristics of theory z
1. Collaborative decision making 2. Generalized skills 3. Long-term employment- workers are cooperative and loyal to the organization
Agents/brokers
Intermediaries that facilitate negotiations between buyers and sellers of goods and services but never take title (ownership) of the products traded
Goods and services included in CPI:
1. Apparel 2. Education and communication 3. Food and beverages 4. Housing 5. Medical care 6. Recreation 7. Transportation 8. Other goods and services
Knowledge workers value 3 things higher than money:
1. Autonomy 2. Mastery 3. Purpose
B2B Classifications
1. Equipment 2. Maintenance, repair, operating (MRO) products 3. Raw and processed materials 4. Component parts 5. Specialized professional services
balance of payments (BOP)
Summarizes all of the transactions, payments, financial aid, and gifts that take place between residents of a country and the external world.
Augmented product
consists of the core product and the actual product plus other real or perceived benefits that provide additional value to a customer's purchase
It takes ______ to _______ years for new businesses to become profitable.
3, 5
Component parts
Assembled portions of the finished product
Products of Societal Marketing Era
Body Shop, Starbucks
Decline stage example
Cassette tapes replaced vinyls completely
Example of B2B advertising
Caterpillar the earth-moving equipment company advertises to construction companies
Price discrimination
Charging different prices to different customers
Expectancy
The idea that a person's effort has an appreciable effect on a situation's result
Idea Generation
1. Brainstorm new product ideas 2. Think of ways to improve an existing product
Promotion
1. Inform and persuade customers to buy 2. Build positive customer relationships
Example of fee-based models
Consumer Reports
Example of social entrepreneurs
Delaney Street Foundation educate substance abusers, former felons, and homeless so they can be productive
Not all businesses provide a product. True or False
False
Wholesalers
Intermediaries that buy and resell products to other wholesalers, retailers, and industrial uses
Chief Operating Officer (COO)
Manages day-to-day activities and reports them to the CEO
Cent-off deals
Offers a brand at a lower price
Example of retail advertising
Plato's Closet
Example of advocacy advertising
Political campaigns
Example of infomercials
QVC
How does social media help businesses?
Social media builds and supports relationships with customers
Culture
The set of learned attitudes, beliefs, and ways of life that are unique to a society and handed down from generation to generation
Why do businesses have diversity programs?
To include minorities and to ensure all employees are treated the same
unemployment rate
a lagging indicator that measures the number of workers who are at least 16 years old who are not working but have tried to find jobs within the past 4 weeks
Identifying the internal strengths and weaknesses as well as the opportunities and threats found in the external environment with regard to the marketing functions of an organization is known as a. A situational analysis b. A SWOT analysis c. A marketing analysis d. A competitive analysis
a. A situational analysis
Employee stock purchase plan
allow employees to purchase company stock at a discount (usually 85% of market value)
Community-based models
allow users with similar interests to interact with each other worldwide
The mission statement for a company is MOST likely to appear on _________. a. internal memos b. advertising materials c. company stationery d. sales contracts e. inner-office emails
b. advertising materials
example of duopoly
coke and pepsi
Many e-commerce businesses failed in the late 1990's because_________. a. their online stores were a source of identity fraud b. they were owned by young entrepreneurs c. there was an economic decline called the "dot-com bust" d. they did not plan for rapid growth and lacked sufficient inventory to fulfill others e. they had too many other online competitors
d. they did not plan for rapid growth and lacked sufficient inventory to fulfill others
Information
data that have been organized in a way that makes them useful
mission statement
defines the core purpose of the organization, describes its values, goods, and aspirations; reflects the personality of the company
Mae's oven bakes 50 cinnamon rolls an hour. She bakes 200 cinnamon rolls a day. The cost of power running her oven each day is $30. Mae has decided that she would like to bake the same amount of cinnamon rolls in less time in order to save on energy costs. What should she do? a. Increase efficiency by beginning her baking operations earlier in the day. b. Increase her customer base by advertising on popular local food blogs. c. Manage competition by baking muffins as well as cinnamon rolls. d. Increase profitability by charging more money per cinnamon roll. e. Increase productivity by baking more cinnamon rolls per hour.
e. Increase productivity by baking more cinnamon rolls per hour.
Which is NOT a primary function of management? a. planning b. organizing c. leading d. monitoring e. marketing
e. marketing
orientation includes
employee, responsibilities, breaks and lunch periods, reporting illness/emergency, schedules
Resource investigator
extroverted and communicative
love and belonging
feeling accepted by others
Mastery
feeling skilled and having time to develop and improve their skills
Raising capital of a sole proprietorship
funding mostly derived from owner; outside funding difficult to obtain
vision
identifies what the business wants to be in the future
marketing
identifying and meeting human needs and wants
Sherman Antitrust Act
illegal act of a company becoming a monopoly
trade barriers
increases costs to foreign companies or restrict the supply of imports, driving up prices and reducing sales in the domestic market
Intrinsic motivators
internal motivating factors that managers cannot control
Lifestyle entrepreneurs
look for a certain lifestyle when they begin their business, such as freedom from corporate bureaucracy, the opportunity to work at home, or flexibility in work hours or travel schedules.
Flexible and self-directed
make their own decisions and react quickly to new situations
Age Discrimination in Employment Act
makes it unlawful to discriminate against a person because of his or her age with respect to employment
Managers use performance appraisal for...
making decisions about promotion, raises, additional training, or reassignments
Management of a limited-liability company (LLC)
management details are described in an operating agreement
Operational requirements of a sole proprietorship
minimal legal requirements
When the supply curve shifts to the left it has a...
negative impact
collective bargaining process
negotiating with the employer for better work conditions and terms of employment
Preliminary paperwork of a sole proprietorship
no special forms required
preliminary paperwork of a partnership
no special forms required; partnership agreement recommended
subsidy
opposite of tariffs, government makes payments to domestic producers
teleconferencing
prevents unnecessary travel expenses
Free trade
refers to the unencumbered flow of goods and services across national borders
self-actualize
self-fulfillment, creativity, beauty
organization chart
shows how groups of employees fit into the larger organization structure
Flexibility
smaller businesses can work better with individuals
Online Analysis Package (OLAP)
software application that enables very quick analysis of combinations of different business factors
affirmative action
strategy to increase the number of women and minorities to improve competitiveness
Technical skills
the ability to apply specialized knowledge or expertise
Emotional intelligence
the ability to understand both one's own and other's emotions
macroeconomics
the study of the behavior of the overall economy
strike
union workers may vote to agree to stop working
Liability of a sole proprietorship
unlimited liability
liability of a partnership
unlimited liability
Consequences of purchase
unscrupulous marketing, may take advantage of less sophisticated members of society
Big data analysis
use of large data sets and special software tools that can extract information
What is the difference between a vision and a mission statement?
vision are long-term goals and is directed to employees; a mission is current goals, directed to consumers, used on goals and products
Purpose
wanting their lives and work to have higher meaning
corporate philanthropy
when companies donate some of their profits or resources to charitable organizations
offshoring
when companies relocate production facilities overseas or subcontracting some components of their products to foreign countries for lower costs
Example of ownership utility
when customer buys swimsuit from store
telecommute
work from a location away from the office
Consumer behavior helps marketers
1. Select the most profitable target markets 2. Implement the marketing mix
Disadvantages of wholly owned subsidiary
1. risks and costs of entering a foreign market
What are some popular personality assessments?
Big Five, Cattell 16 PF, Thematic Apperception Test
M-3
M-2, larger CDs and larger money market accounts held by large corporations
Example of interactive advertising
Video catalogs on the Internet and kiosks in the mall
Form utility refers to ________. a. a product produced from raw materials that pleases the customer b. stocking and displaying products c. the means of ordering products d. the interesting features of a particular brand's product e. the benefits of practically when a product can be used with no assembly required
a. a product produced from raw materials that pleases the customer
Example of dynamic pricing
auctions
Which of the following is not a reason that many business fail? a. They grow too rapidly b. They focus on the customer rather than their product or service c. The owners lack managerial experience d. They run into cash flow problems
b. They focus on the customer rather than their product or service
Which of the following would MOST likely happen to companies that are less efficient than their competitors? a. They would become a target for hostile takeover b. They would be taken over by the government c. They would close down d. They would continue to do business as usual e. They would receive additional money from investors
c. They would close down
Which of the following is the most important question you need to ask yourself when you're thinking about starting a business? a. Do I want to buy an existing business? b. Can I manage a business by myself? c. What will customers want to buy? d. Where will the startup funds come from?
c. What will customers want to buy?
Veronica is reentering the workforce after years away caring for her elderly parents. She is making many assumptions about today's workplace. Which of Veronica's assumption is FALSE? a. The number of women in the workplace is growing b. Women receive fewer promotions than their male counterparts c. Women receive pay equal to their male counterparts d. Women battle sexism in the workplace e. Women may face sexual harassment in the workplace
c. Women receive pay equal to their male counterparts
Specific
clearly defined or identified
departmentalization
consists of the decisions made to structure the company
supply-and-demand curve
graph illustrates market price
Example of small businesses helping consumers
hair-salons, landscapers, and dry cleaners (deliver services big companies are not willing to provide)
self-esteem
recognition, respect
social audit
reports how well a company is meeting its social responsibilities and is usually conducted by a third party
Americans with Disabilities Act (ADA)
requires companies to make reasonable accommodations to the known disabilities of an applicant or employee
Theory X (McGregor)
suggests humans inherently dislike work and want to avoid it
Software
tracks your personal information and passes it along to a third party
Example of high motivation
"My work actually affects the outcome", "There's a good chance I'll get a reward", "If it works out, it'll be a big reward"
Promotional Campaign Steps
1. Identify a target market 2. Define objectives 3. Determine a promotional budget 4. Develop a unifying message 5. Implement the plan 6. Evaluate effectiveness
Marketing fundamentals
1. Communicate society's needs 2. Establish pricing strategies 3. Promote products benefits 4. Distribute products 5. Establish meaningful relationships with customers
Factors to consider in a situational analysis
1. Company 2. Collaborators 3. Customers 4. Competitors 5. Climate
Types of advertising media
1. Direct mail 2. Television 3. Newspapers 4. Magazines 5. Radio 6. Internet 7. Outdoor media
Marketing Environment Influences
1. Competitive 2. Economic 3. Technological 4. Sociocultural environments 5. Global environments 6. Political environments 7. Regulatory environments
What skills do managers need to be successful?
1. Conceptual skills 2. Technical skills 3. Time management skills 4. Interpersonal skills 5. Decision-making skills
Closing the sale
1. Conduct physical purchase
Virtual teams use...
1. Conference calls 2. E-mail 3. Video conferencing 4. Live broadcasting 5. Web casts 6. Wikis
Aspects of diversity
1. Cultural diversity 2. Religion 3. Gender 4. Age
What are they key parts of human resource planning?
1. Determining the optimal number of employees a business needs 2. Clearly identifying the exact job positions and the requirements of those positions
Example private brand
1. DieHard batteries 2. Kenmore appliances 3. Craftsman Tools
Who measures CSR?
1. Boston College Center for Corporate Citizenship 2. Calvert Investment Company 3. Fortune's 10 Most Admired Companies
Example of component parts
1. Brakes 2. Engines 3. Transmissions 4. Steering columns 5. Lumber 6. Cement 7. Drywall 8. Electrical wire
Advantages of advertising
1. Builds brand awareness and brand loyalty 2. Reaches a mass audience
How does the Fed manage the country's money supply?
1. Changing certain interest rates 2. Buying and selling government securities 3. Trading in foreign exchange markets
Why do small businesses fail?
1. Accumulating too much debt, if the new business doesn't generate returns quickly enough they'll take out more loans 2. Inadequate management, includes poor financial, business management, and ignore signs of a business failing 3. Poor planning, one of the biggest reasons businesses fail 4. Unanticipated personal sacrifices
Racerback Swimwear, an Australian company, opens a factory near Tallahassee, Florida. The value of the swimsuits produced in the new Florida factory is included in which country's GDP? a. Australia b. United States c. Both Australia and the United States d. It is not included in the GDP at all
b. United States
Viral marketing can be prevented by using the proper spyware True or False
False
example of belief orgins
Family, religion, movies, personal experiences, people you admire
A band that markets several different products under the same brand name is a a. manufacturer's brand b. family brand c. private brand d. co-brand
b. family brand
marketing plan
A formal, written document that directs a company's activities for a specific period of time.
Trademark
A legally protected brand
Social media managers (social media marketing specialists)
A person in a position that is responsible for monitoring social networks and generating "buzz" on them about a company and its products
Example of form utility
A swimsuit is made from fabric and supplies
Strength-Based Management
A system based on the belief that, rather than improve weak skills, the best way to help employees develop is to determine their strengths and build on them
According to the theory of comparative advantage, if the United States and Mexico increase their trade with each other, the two countries will experience _____________standards of living. a. no change in b. higher c. rapidly decreasing d. slightly lower e. identical
b. higher
Order influences
Are not engaged in direct selling but target those who make the final decision
Example of create new use
Arm and Hammer baking soda as a refrigerator deodorizer
Example of lower the price
Automobile discounts, rebates, and low-interest loans
Producer -> Consumer distribution channel
Avon
The AFL-CIO, the UAW, and the Teamsters are examples of a. illegal organizations b. labor unions c. labor relations d. union locals
b. labor unions
Jackson Eats is a partnership owned by Jesse and Robert Jackson. They need additional capital to expand to a new location, so they decided to bring Sean, who will not only contribute some capital but will also manage the new restaurant. Sean would best be considered as a(n) a. general partner b. limited partner c. owner d. None of the above
b. limited partner
Family brand
Brand that markets several different products under the same brand name
When the supply curve and the demand curve for a single product or service are shown on the same graph, the point at which the curve intersect identifies the __________. a. total profit earned by the producers b. market price of a good c. quality of the good or service being purchased d. amount of the surplus to be anticipated e. number of substitute goods available
b. market price of a good
Chief Financial Officer (CFO)
Corporate officer who is responsible for all of the accounting and finance issues of the company.
What is an example of For-profit businesses
Cracker Barrel
Mobile advertising
Delivering advertising messages via mobile phones
Place utility
Delivering product where a customer wants it
Example of internet entrepreneur
Facebook, Amazon.com, eBay, Google, and Wikipedia
Mercosur
Free trade agreement between Brazil, Argentina, Paraguay, and Uruguay
Ownership utility
Freedom to use product as needed
Products of Sales Era
Fuller Brush, Electrolux (vacuum)
The lowering of trade barriers makes...
Global business much cheaper and easier
Example of generic brand
Great Value, Signature Select
Maturity stage example
In 1970's cassette tapes were popular making vinyls drop in sales
Example of Multidomestic Strategy
In Asian countries McDonalds offers seaweed flavored fries
Population changes
Increased population increases demand for utilities and public and consumer services; demographic changes such as the aging baby boomers also affect demand for certain goods.
Economic benefits of protectionism
Increased sales at higher prices improves the profitability of protected domestic companies, creating greater job security for their workers
Merchant wholesalers
Independently owned businesses that take ownership of the products they handle
Example of economic conditions of other countries
India and China growth increases the global demand for energy, which makes oil prices rise higher
hackers
Individuals who gain unauthorized access to your computer or computers that contain information about others.
Business to business products are also known as
Industrial products
Publicity
Information about an individual, organization, or product transmitted through mass media at no charge
W in SWOT
Internal weaknesses, lack of internal capability or expertise compared to the competition
The lowering of trade and investment barriers let's...
International firms move their production facilities to the location with the lowest cost for that activity and serves the world market from that location
A term that describes the movement of production away from a domestic production site to a foreign location is _________ outsourcing. a. domestic b. offshore c. production d. onshore e. in-house
b. offshore
Example of whistle blower
Jeffrey Wigand, vice president of a tobacco company who revealed on 60 minutes in 1996 that his company was manipulating the effect of nicotine in its cigarettes to promote addiction
Socially responsible investing (SRI) means that you are investing in a. companies making the largest gains in profit for the past three years b. only companies that meet a certain standard of CSR c. only non-profiting companies d. companies that sponsor food banks
b. only companies that meet a certain standard of CSR
CSR can be measured by a. a company's rate of growth b. organizations that monitor and rank performance on social issues c. the happiness level of employees in a company d. businesses that have high profit margins and gross sales
b. organizations that monitor and rank performance on social issues
The four primary processes of management are a. planning, optimizing, leading, and controlling b. organizing, controlling, planning, and leading c. prioritizing, leading, controlling, and organizing d. planning, leading, organizing, and deciding
b. organizing, controlling, planning, and leading
Producer -> Agent/Broker -> Wholesaler -> Retailer -> Consumer distribution channel
Levi's Jeans
Work flow, process control, and return an investment
Making sure an employee's measurable performance is linked to measurable goals of company
Alternative scheduling plans(flextime)
Management defines a total number of required hours as a core workday and is flexible with starting and ending times
If you want to start a new business, which of the following enterprises would be the best choice? a. Automobile manufacturer b. Aluminum processor c. Steel refinery d. Car dealership
d. Car dealership
Example of strategic alliances
Microsoft has an alliance with Japanese mobile phone manufacturer
Example of sovereign wealth funds (SWFs)
Norway, China, Saudi Arabia, and Singapore
Shares of profits or losses
Not only should the agreement specify how to divide profits and losses between partners, it should specify how frequent this will occur
What are examples of business-to-business?
Office Depot to Cracker Barrel
Coaching and support
Ongoing feedback and support for the employee
A locally-operated credit union is an example of a __________. a. not-for-profit business b. limited liability company c. sole proprietorship d. cooperative e. partnership
d. cooperative
The level of a product that satisfies the basic need or want that motivates a purchase is the a. total product offering b. augmented product c. actual product d. core product
d. core product
Demand-based pricing (value-based pricing)
Pricing a good or service based on the demand for the product or its perceived value
Example of mobile advertising
Qr codes and text messaging
Nutrition Labeling and Education Act of 1990
Requires all nutrient content claims and health claims to be consistent with agency regulations
Situational analysis
SWOT analysis but focuses only on marketing
Kris and Amy own a workout facility in which they are co-owners. Both take an active role in the management of the business and each accepts unlimited liability. Kris and Amy operate as a___________. a. dual proprietorship b. joint venture c. cooperative d. general partnership e. limited partnership
d. general partnership
Selling agents
Sell a manufacturer's entire product line through a contract
Wholesale merchants
Sell primarily to retailers
Retailers
Sell products directly to consumers
Industrial distributors
Sell to manufacturers and institutions such as hospitals and the government
What forms of business ownership cease after owners departure or death?
Sole proprietor, general partnership
Example of social media and mobile marketing
Sprinkles Cupcakes posts on Facebook for flavor ideas and for people to get free cupcakes
The _________ is the most widely used indicator of economic growth in the world today a. gross national product b. consumer price index c. producer price index d. gross domestic product e. unemployment rate
d. gross domestic product
Example of companies that started off as small businesses
Starbucks, Under Armour, and Amazon.com
SWOT stands for
Strengths, Weaknesses, Opportunity, Threats
The two functions of labels are to___________. a. protect the products and persuade b. facilitate use and be environmentally friendly c. entice and mislead d. inform and persuade e. inform and facilitate use
d. inform and persuade
A mini-multinational is a company that a. is small but still does international sales b. is a large international firm c. is a small local business d. is now illegal because of trade barriers
d. is now illegal because of trade barriers
A SWOT analysis is used to determine the strategic fit between an organization and its internal and external environments True or False
True
Growth stage example
Vinyl records grew rapidly in the 1950s through 1960s
Example of variable costs
Wages, raw materials, and energy costs
Example of O in SWOT
Walmart expands to new locations and new types of stores, take over or form alliances with other global retailers in Europe or China
Permanent part-time
Workers are hired on a permanent basis to work a part-time week (have same benefits as full-time employees)
Example of turnkey projects
Wuhan Urban traffic control system located in China is from German electronics
Green collar job
a job that contributes to improving the environment
Price elasticity
a measure of the sensitivity of demand to changes in price
economy
a system that tries to balance the available resources of a country, such as land, capital, and labor against the wants and needs of consumers
socialism
a system whereby the government owns or controls many basic businesses and services and the profits from them are distributed evenly among the people
Product life cycle
a theoretical model describing a product's sales and profits over the course of its lifetime
The cheap foreign labor argument for protectionism relates to ________. a. An undeveloped domestic industry's workers b. A lower wage often earned by many foreign workers c. An industry critical to national security being protected from foreign workers d. A trading partner increasing trade barriers on work done by citizens e. Selling a product at a price below the price charged in the producing country
b. A lower wage often earned by many foreign workers
The developing country of Alpha had a rule that none of its factories could be owned by companies from the developed country of Beta. If Alpha drops this rule, this would be an example of a(n) __________. a. Total Embargo b. Technological Innovation c. A decline in trade and investment barriers d. Offshore outsourcing e. An Increase in Tarrifs
c. A decline in trade and investment barriers
Period of existence of a limited-liability company (LLC)
ongoing existence is determined by requirements imposed by the state of formation; transferability is determined by the operating agreement
sustainability
the process of working to improve the quality of life in ways that simultaneously protect and enhance the Earth's life support systems
Production Era
-Industrial Revolution until 1920s -Limited supplies and strong demand -A good-quality product sold itself
Sales Era
-Mid 1920s to early 1950s -Limited supplies and strong demand -A good-quality product sold itself
Consumer sales promotion tools
1. Coupons 2. Rebates 3. Frequent-user incentives 4. Point of purchase displays 5. Free samples 6. Contests and sweepstakes 7. Giveaways
Price
1. Cover costs 2. Price competitively
Types of Entrepreneurs
1. Lifestyle entrepreneurs 2. Micropreneurs 3. Home-based 4. Internet entrepreneurs 5. Growth entrepreneurs 6. Intrapreneurs 7. Social entrepreneurs 8. Social intrapreneurs 9. Serial entrepreneurs 10. Entrepreneurial teams
The Fair Packaging and Labeling Act of 1966 requires companies to identify:
1. The product 2. The name and place of business of the manufacturer, packer, or distributor 3. The net quantity of the contents
External Recruiting Methods
1. Word-of-mouth referrals 2. Trade shows 3. Employment agencies 4. Headhunters 5. Newspapers 6. Industry-specific magazines 7. Hiring from competition 8. Virtual job markets 9. Internet job/networking sites 10. College career fairs/offices
Strategies for entering foreign markets
1. exporting 2. turnkey projects 3.franchising 4. licensing 5. joint ventures 6. strategic alliances 7. contract manufacturing 8. wholly-owned subsidiary
A mission statement...
1. helps management and employees remain focused 2. lets employees understand the core values of the company for which they work 3. reflects the personality of a company and can be different in design and content
Corporate culture
A collection of values, norms, and behavior shared by management and workers that defines the character of an organization
control chart
A graph that shows the average and fluctuations of a process being monitored to determine whether it is behaving within the limits of proper functioning
limited-liability company (LLC)
A hybrid form of business enterprise that offers the limited liability of the corporation but the tax advantages of a partnership.
What forms of business ownership require preliminary paperwork to startup?
C-corp, S-corp, LLC
Pricing strategy of monopolistically competitive markets
Charge higher prices, some firms may charge lower prices to create competition
Cost-based pricing (Cost-plus pricing)
Charging a price in relation to the costs of providing the good or service
Chief Executive Officer (CEO)
Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers.
Controlled messages
Corporate, advocacy, and public service advertising and corporate reports publishing
Example of cooperative
Costco, Sam's Club
Secondary data
Data that has already been collected and processed
Time utility
Delivering a product when a customer wants it
Niche approach
Designed to reach a small, specific audience
Breakeven analysis
Determines the production level for which total revenue is just enough to cover total costs
Internet advertising
Displays messages on websites as banner ads or pop-up videos
Point of purchase displays
Displays strategically located to draw attention and encourage impulse purchase
Pricing strategy of oligopolies
Do not compete on price to avoid price wars
A product is defined as any intangible good, service, or idea available for purchase. True or False
False
A product's packaging is used only to provide protection of the good's contents. True or False
False
Any business can elect to be an S corporation True or False
False
Any profits generated by a not-for-profit organization must be turned over to the government. True or False
False
Example of price-takers
Farmers have no control over the prices of their product
North American Free Trade Agreement (NAFTA)
Free trade agreement between Canada, Mexico, and the United States; Established on January 1, 1994; Quadrupled trade between the 3 countries ($19 million)
Pre-approach
Gathering information
What forms of business ownership may have an unlimited number of owners?
General partnership, C-corp, LLC
What forms of business ownership can report business profit and loss on their personal tax returns?
General partnership, S-corp, LLC
Example of home-based entrepreneurs
Goat Milk Stuff was launched to make all natural soap at home
Producer -> Retailer -> Consumer distribution channel
Goodyear
Example of product advertising
Gotham Steel
Example of specialized industry portals
Health care and real estate
Example of employee benefits
Health insurance, vacation, holiday, and sick-pay
Consumer sales promotions
Incentives designed to increase final consumer demand for a product
Preliminary paperwork of a corporation
Incorporation paperwork must be filed with state and federal agencies
Preliminary paperwork of an S corporation
Incorporation paperwork must be filed with state and federal agencies
S in SWOT
Internal strengths, potential internal assets that give a company a competitive advantage
Example of proxy fight
Microsoft tried to with Yahoo!
Marketing intermediary are also known as
Middlemen and resellers
Dynamic pricing
Prices are determined directly between the buyer and seller
Purchasing agents
Purchase items for buyers
Example of non-profit and public services advertising
Red Cross, prevention of wild fires
What causes the social environment to change?
Social, economic, political movements and trends
lagging indicators
Statistics that change only after the economy as a whole changes
Example of community-based models
Steam
A market niche is a narrowly defined market segment. True or False
True
Businesses are entities that offer goods and services to earn a profit True or False
True
Benefits to democratic leadership
Values people's input and gets commitment through participation
Changes in income levels
When income increase, people are able to buy more. Conversely, when income decreases, people won't be able to buy more. This is also a determinant of demand
Examples of technology creates opportunities for new businesses
Zappos, YouTube, and eBay
master limited partnership (MLP)
a business partnership that is owned and managed like a corporation but often taxed like a partnership
deflation
a continuous decrease in prices over time
Quota
a quantity limitation on the amount of an import allowed to enter a country
Socially responsible investing (SRI) is defined as investing only in companies that have met a certain standard of __________. a. corporate social responsibility b. social acceptability c. social media usage d. financial transparency e. global impact
a. corporate social responsibility
A rise in the general level of prices over time is called _____. a. inflation b. equilibrium c. disinflation d. deflection e. deflation
a. inflation
A CVS/pharmacy store is an example of a __________ business. a. national b. regional c. multinational d. boutique e. local
a. national
performance appraisal
an evaluation of an employees performance that gives feedback about how well the employee is doing, as well as where changes and improvements are needed
cross-cultural awareness
an understanding, appreciation, and sensitivity to foreign cultures
nonconvertible currency protects from...
capital flight
To succeed in a business, a new owner must understand _____. a. the principles of cash flow b. the basics of business management c. the essentials of time management d. all of these
d. all of these
Donors to corporations can...
deduct their donations from their taxes
Which of the following is a disadvantage of forming a corporation? a. less flexibility raising capital b. difficult transfer of ownership c. limited life d. unlimited liability of owners e. double taxation
e. double taxation
trade deficit
exists when the value of its exports
Autonomy
having some control over the key decisions in their work lives
Example of time utility
having the swimsuit available in the summer
market economy
individuals and businesses make decisions based on consumer needs and wants
Consumer market
individuals purchase goods and services for personal consumption
lockout
management refuses to allow union members to work
Sociocultural influences
on buying decisions include the buyer's culture, subculture, social class, family, and peers
Consumer Privacy Bill of Rights
one attempt at detailing legislation to define what is permitted in the digital age
flexible benefit plans
permits employees to pick from a menu of several choices of taxable and nontaxable forms of compensation
matrix organization
pools people into groups by skills and assigns them to projects as needed
Product advertising
promotes a specific product's uses, features, and benefits
Fortune
publishes lists of admired companies each year
Crowdfunding sites
solicit small amounts of money from a large number of people for startup businesses
What type of plan does top management create?
strategic plan
The EU invented...
the Euro, is used by 18 out of 28 members
Jurisdiction
the authority of a government to legislate and enforce its many laws
Freely floating (or flexible) exchange rate system
the global supply and demand for currencies determine exchange rates
Horizontal merger
two companies that share the same producer lines and markets and are in direct composition with each other
gamification
the application of game design concepts to nongame settings
Forecasting
the attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be labor shortages or surpluses
vertical organization (tall organization)
the company is organized by specific function, such as marketing, finance, purchasing, information technology, and human resources
Franchiser
the company that sells a franchise
planned economic system
the government plays a significant role in determining the goods and services produced and distributed
retirement
the point in one's life where one stops participating full-time in a career
legal regulation
the specific laws governing the products or processes of a specific industry
microeconomics
the study of how individual businesses, households, and consumers make decisions to allocate their limited resources in the exchange of goods and services
Smaller companies agree to merge with larger companies if...
they feel their company won't last alone
Example of natural resources
trees, coal, oil, natural gas
Hawthorne effect
used to describe the increase in productivity caused by workers being given special attention
Advantages of turnkey project
1. increased profits for high-tech firms
Example of fixed exchange rates
China has a fixed currency to a rate that is weak compared to the dollar
Brand awareness
Extent to which a particular brand name is familiar within a particular product category
demand curve
a graph that shows the relationship between the price of a good and the quantity demanded
mediation
a process that involves a neutral third party that assists the two parties
Cooperative arrangements between actual or potential competitors for a specific period of time a. Strategic Alliances b. Turnkey Projects c. Contract Manufacturing d. Wholly-Owned Subsidiary e. License Agreement
a. Strategic Alliances
When naming a business, which of the following approaches would NOT be a mistake? a. hiring a company to create a name b. using geographic names c. involving employees or clients in the naming decision d. using a generic name e. using a name that tries to marry description with product
a. hiring a company to create a name
expansion or recovery
after a recession/depression the economy hits a trough and begins to expand again
Todd is a first-line manager for a local gas station. He is creating a plan for employees that lays out what needs to be done on a daily basis to run the store. What type of plan is Todd creating? a. Long-term success plan b. Operational plan c. Mission plan d. Strategic plan e. Tactical plan
b. Operational plan
According to the Hawthorne effect, _________. a. workers will be more productive when the physical influences on the workplace suit them b. workers will be more productive when the psychological influences on the workplace suit them c. workers will be more productive when they know are being studied d. workers will be less productive when they know they are being studied e. worker's productivity is not influenced by whether or not they are being studied
c. workers will be more productive when they know are being studied
enterprise zones
geographic areas targeted for economic revitalizing
virtual team
members are located in different physical locations but work together to achieve a goal
Small business investment company program (SBIC)
private venture capital firms licensed by the SBA to make equity capital or long-term loans available to small companies
M-2
savings, money market accounts, and certificates of deposits (CDs) (money banks can lend out)
open-source movement
software projects that are developed, tested, and maintained for free by a worldwide network of volunteers
Distribution
The process that makes products available to consumers when and where the consumers want them
Profit sharing could mean that in a good year, employees get bonuses, or it could refer to the company's contributions to an employee retirement plan. True or False
True
currency
a unit of exchange for the transfer of goods and services, provides a consistent standard
Rewarding
providing personal satisfaction
Chief Information Officer (CIO)
responsible for technology, information processing, systems design and development, and data center operations
Example of elastic goods
restaurant meals
bank runs
when people get nervous they won't get their money back from the bank so they withdraw all their money
The structure of an organization chooses depends on what factors?
1. number of employees 2. speed of decision that needs to be made 3. how vulnerable the company is to rapid changes 4. collaborative nature of the work
Characteristics of a B2B market
1. A few buyers that purchase in large quantities 2. Highly trained buyers 3. Group purchasing decision 4. Strong customer relationship 5. Geographically concentrated buyers 6. Direct purchasing
Characteristics of visionary leadership
1. Believes in own vision 2. Is empathetic 3. Explains how and why people's efforts contribute to the "dream"
Marketing intermediary
Business firm that operates between producers and consumers when and where the consumers want them
What forms of business ownership have limited liability for business debts and obligations?
C-corp, S-corp, LLC
Communism and socialism are examples of market economies True or False
False
Example of procurement exchange
Kentucky e-procurement
Example of frequent-user incentives
Marriot points
Coordinator
Mature and confident
Limited-service wholesalers
Offer fewer services than full-service wholesalers
Liability of an S corporation
Owners (shareholders) are not personally liable for debts of corporation
Financial Independence
Owners feel they can make more money operating their own business
Completer/Finisher
Painstaking and conscientious
Rebates
Partial refunds on what a customer has already paid for a product
Example of a green industry
Patagonia, make fleeces out of recycled plastic bottles and recycled polyester
Four P's
Product, Price, Promotion, Place
Example of unemployment
Proline Communications Inc. opened 3 months after Bruce Freeman was fired
Example of opportunity knocks
Rajhog Foods started in New York offering Indian sweets and snacks not offered in the area
Product mix
The combination of all product lines offered for sale by a company
Public relations
The marketing function that establishes and maintains mutually beneficial relationships between an organization and its stakeholders
Co-brand
The use of one or more brands affiliated with a single product
When democratic leadership is appropriate
To build buy-in or consensus or get valuable input from employees
Benefits to visionary leadership
moves people toward shared dreams
Operational requirements of an S corporation
must have board of directors, corporate offices, annual meetings, and annual reporting
Decision support system (DSS)
software system that enables companies to analyze collected data so they can predict the impact of business decisions
strikebreakers(scabs)
workers hired to do the jobs of striking workers until the labor dispute is resolved
Decision-making process
It is important to consider how decisions will be made
Private brand
Brand created by a distributor or a middleman
Shaper
Challenging and dynamic
Example of comparative advertising
Coca-Cola and Pepsi
Role clarifying
Defining roles in terms of daily work tasks
Changes in the prices of resources do not help determine supply because those resources can be replaced by substitute goods. True or False
False
Theory Z (Ouchi)
Japanese Model, People are more loyal to a company if they have part in the decision making
Identify a market need
Finding an unmet need and determining a product or service that would meet this need
Pricing strategy of perfectly competitive markets
Firms charge prices equivalent to other firms
Retail(local) advertising
Focuses on attracting customers to a fixed location
physiological needs
Food, water, sex, sleep
Products of Marketing Era
GE (fridge, toaster, oven, television), McDonald's, Apple
Example of specialty store
Gamestop, Footlocker
Example of inelastic goods
Gasoline and electricity
Example of task utility
Getting a suit altered
Rewards, recognition, and compensation
Given as appropriate to motivate an employee toward achieving current and future goals
Why do managers need to plan?
Goals and plans help to keep you on track
Example of growth entrepreneurs
Google and eBay when they first started
Example of entrepreneurial team
Google, HP, Cisco, Imagen, and Yahoo
National business
Has several outlets throughout the country, but it does not serve an international market.
Example of wholly owned subsidiary
Hyundai South Korean, entered Russian market by establishing its own factory in Russia
Example of home-based franchises
Jan-Pro, Snap-On Tools, and Jazzercise
Example of brand licensing
Mickey Mouse, NFL, NBA
Offshore outsourcing (offshoring)
Movement of production or other functions from a domestic site to a foreign location
Unsought goods and services
Products buyers don't usually think about buying, don't know exist, or buy only when a specific problem arises
The Civil Rights Act of 1964
Prohibits discrimination based on race color, gender, religion, and national orgin
Core product
Provides the benefit or service that satisfies the basic need or want that motivates the consumer's purchase
Example of agents/brokers
Real estate agents, brokers, stockbrokers, and eBay
Example of product placement
Reese's Pieces in E.T.
Reference pricing
Refers to the listing an inflated price that is then discounted to appear as a good value
Product mix width
Refers to the number of different product lines a company offers and is also based on profit
Intensive distribution
Selling convenience products
Selective distribution
Selling shopping products
Exclusive distribution
Selling specialty products
Monitor evaluator
Serious and strategic
Infomercials
Television commercials that run as long as regular TV programs
Absolute advantage
The ability to produce more of a good or service than any other country (not more efficient)
Foreign direct investment (FDI)
The purchasing of property and businesses in foreign nations
Globalization has affected individual lives and has affected....
The way companies conduct business around the world
Example of company website
UPS has a site for business owners looking for shipping solutions
Bulk breaking
Wholesalers buy in bulk and sell to retailers in smaller quantities
Management service and advice
Wholesalers may assist retailers in training their sales staff, improving layouts and displays, and setting up accounting and inventory control systems
Credit cards
a convenient means of acquiring cash
employment at will
a legal doctrine that allows an employee to quit at any time for any reason, or no reason, and that allows an employer to terminate employment for any reason or no reason
labor union
a legally recognized group dedicated to protecting the interests of workers (fight for better work conditions)
globalization
a movement toward a more interconnected and interdependent world economy
Products like Brandwatch and UberView are used by companies to ________. a. perform social media monitoring b. detect crowdsource opportunities c. generate automatic Tweets d. create apps for mobile devices e. expand the possibilities of cloud computing
a. perform social media monitoring
Half of small businesses use
bank loans and lines of credit
Rolling out the product
companies introducing new products in one region at a time
strategic alliances
cooperative arrangements, each partner retains its business independence, agreement lasts for a specific time period
Which of the following does not describe a type of leadership style? a. Visionary b. Autocratic c. Democratic d. Affluent
d. Affluent
A company's ethics can be examined by a. following its stock price b. interviewing employees c. checking documents filed when it was incorporated d. reviewing its code of ethics and mission statement
d. reviewing its code of ethics and mission statement
both goals and objectives are best set with...
deadlines and quantifiable measures
Job analysis
defines in detail the particular duties and requirements of the tasks and responsibilities an employee is required to perform
fiscal policy
determine the appropriate level of taxes and government spending based on external actions on the economy
governments play a large role in
determining how much international trade they will support
Evelin has a successful home cleaning business and has added 50 employees over the past few years. She's considering seeking out business partners to help grow the business even faster. Because of the complexities of the business, and her desire to separate her business and personal assets, she should consider switching her business to a(n) __________. a. cooperative b. unlimited liability company c. sole proprietorship d. limited partnership e. C corporation
e. C corporation
Which of the following oversees the day-to-day operations of a company? a. Board of directors b. Line manager c. Chief financial officer d. Chief executive officer e. Chief operating officer
e. Chief operating officer
S corporation...
gives partners limited liability but avoids double taxation
S corporations...
have shareholders like C corporations and must comply with all other C corporation regulation
Performance management
is an approach that combines goal setting, performance appraisal, training, and development into a unified ang ongoing process
Advertising
is paid, impersonal mass communication from an identified sponsor to persuade or inform a targeted audience
trough
occurs when the recession hits bottom and the economy begins to expand again
Stock option plans
offer shares of company stock to employees for purchase on a set date at an agreed-upon price
What type of plan does the first-line management create?
operational plan
Brand loyalty
the degree to which customers consistently prefer one brand over all others
Conceptual skills
the mental ability to analyze and diagnose complex situations
A strategic plan focuses on...
the organization as a whole
Data
the representations of a fact or idea
Timely
time frame is reasonable
Social networking sites
websites that make it easier for people to connect with one another online for the purposes of building and supporting social relationships
wikis
websites that support editing by multiple authors
surplus
when supply exceeds demand
Globalization is why...
you'll notice that many products you own were made in countries other than the U.S
example of beliefs
"Nice guys finish last" or "Hard work always pays off"
Product
1. Create product differentiation 2. Develop and effective brand
What are common strategies for company's to recover from a scandal or whistle blow?
1. Find a new leader to set an example of the new ethical image of the company 2. Restructure their internal operation to empower all employees so that they can speak up when they spot a concern 3. Redesign internal rewards (get rewarded for building a relationship over a sale)
What are three strategies for international business?
1. Global strategy 2. Multidomestic strategy 3. Transnational strategy
Individual brand
A brand assigned to each product within a company's product mix
Performance assessment (appraisal)
An element in the performance management process that offers specific information about how an employee's performance is improving the company's result
Cash-and-carry wholesalers
Carry a limited line of fast-moving goods and sell to small retailers for cash, they do not deliver
Example of subcultures
Churches, community organizations, and online communities
Fixed costs (overhead costs)
Costs that do not vary with the production level
Car insurance is an example of a good. True or False
False
Why is the workforce becoming more diverse?
1. Changing demographics in the United States 2. Advancements in technology 3. Outsourcing and offshoring 4. Hiring patterns 5. More women 6. Increased number of older workers
Price expectations
1. If prices are expected to increase in the future, the supplier may reduce supply now to supply more at a later time when prices are higher. 2. Similarly, if prices are expected to decrease in the future, the supplier may make every attempt to deplete supplies now at the higher price.
Disadvantages of cost-based pricing
1. Ignores consumer price expectations and competitors' prices 2. Provides little incentive to keep costs low
Controlling/Monitoring
1. Measuring results against goals 2. Monitoring performance 3. Correcting when necessary 4. Rewarding
Benefits of keeping employees motivated
1. Workers are more productive 2. Workers are more creative 3. Retention levels are higher 4. Companies benefit financially
As more profit is generated, a company is able to increase its productivity. True or False
True
international contract manufacturing
a form of offshore outsourcing
Neot was just promoted, and what she's most excited about is that she now gets a corner office and a designated spot in the employee parking lot. According to Maslow's hierarchy of needs, which level of needs does this best reflect? a. Esteem needs b. Affiliation needs c. Self-actualization needs d. Physiological needs e. A need for power
a. Esteem needs
Small business owners interested in venture capital funding should know that venture capitalists____________. a. look for potential of a public stock offering before investing in a company b. do not seek a management position or control of the business c. fund multiple projects but only with a limited amount of money for each d. provide funding only for capital expenses such as buildings and equipment e. charge interest rates for balances owed and set monthly minimum repayment requirements
a. look for potential of a public stock offering before investing in a company
Examples of franchises
business-services, real-estates, and fast-food
Multidomestic strategy
businesses compete primarily by customizing or differentiating the product to meet local needs, tastes, or preferences
Visionary leadership is appropriate when
changes require a new vision or when a clear direction is needed; radical change
Corporate social responsibility can be defined as a company's obligation to ________. a. include social networking and society events that bring in prominent members of the community b. behave in whatever manner is necessary to earn the highest profit for owners c. be flexible with its ethics in the workplace in order to maintain profitability d. blend its activities into the social fabric of whatever country it conducts business in e. conduct its activities with the aim of achieving social, environmental, and economic development
e. conduct its activities with the aim of achieving social, environmental, and economic development
Objectives are __________. a. usually created on a five-year time frame b. an organization's long-term targets c. achieved by the completion of specific goals d. broad and abstract in nature e. designed to help a company achieve its goals
e. designed to help a company achieve its goals
If a label comes to represent consistent quality and dependability, then the label can perpetuate a(n)___________ brand-name image. a. unethical b. neutral c. negative d. immeasurable e. positive
e. positive
Which level of management is responsible for implementing operational plans and supervising employees who carry out the day-to-day functions of the company? a. Consultant b. Staff manager c. Middle manager d. Top-level manager e. First-line manager
e. First-line manager
Colin is a manager who loves finding what his employees are good at, then placing them in positions in his company in which they will excel. Colin is a huge believer in what type of management? a. Autocratic leadership b. Weakness-elimination management c. Management by inspiration d. Laissez-faire management e. Strength-based management
e. Strength-based management
Programmed learning approach
employees are asked to perform step-by-step instructions or to respond to questions with immediate feedback about the accuracy of the answers
high unemployment=
increase in unemployment benefits
Psychographic segmentation
market segmentation based on lifestyles, personality traits, motives, and values
Taxation of a sole proprietorship
not a separate taxable entity; taxes paid through owner is personal tax return
Taxation of a partnership
not a separate taxable entity; taxes paid through owner's personal tax return
contract manufacturing
occurs when a firm subcontracts part or all of its good to an outside firm as an alternative to owning and operating its own production facility
Judeo-Christian ethics
refers to the common set of basic values shared across both Jewish and Christian religious traditions
Operational requirements of a limited-liability company (LLC)
some reporting/operating requirements, but far fewer than for corporations
Customer Relationship Management (CRM)
the process of establishing long-term relationships with individual customers to foster loyalty and repeat business
recruitment
the process of finding, screening, and selecting people for a specific job
Market research
the process of gathering and analyzing market decisions
External recruiting
the process of searching outside the firm to fill job vacancies
executive coaches
to further develop a manager's effectiveness, coaches identify the manager's strengths and weaknesses and then meet with the manager to work on both
Industrial psychology
to understand scientifically how to manage employees and work optimally
discount rate
when banks borrow emergency funds from the Fed they are charged an interest rate
loss
when expenses are greater than revenue
hostile takeovers
when one company tries to take control over another company against its wishes
Defined benefit plans
where the employee knows ahead of time how much pension they will receive when they retire
What are the challenges for local and regional businesses?
1. Managing money 2. Undercapitalization 3. Controlling Costs
What are examples of business-to-customer?
Amazon.com and Target.com
How does intellectual property create a competitive advantage?
Drug companies and technology companies both own their own patents on certain drugs and software
As more profits are generated...
a company can reward its employees, increase productivity, or expand its business into new areas
Which of the following BEST enables all companies, regardless of size, to compete in the global market? a. technological advances b. a talented workforce c. effective marketing d. government subsidies e. "green" policies
a. technological advances
technology
refers to items and services such as smartphones and software that make businesses more productive
Franchisee
A person who buys a franchise
Budget of CIO
1. Create and monitor IT budget 2. Strive for highest possible return on investment (ROI)
Average variable costs (per unit variable costs)
Equal total variable costs divided by the production level
Examples of serial entrepreneurs
Ted Turner and Richard Branson
Example of price substitute goods
The construction of cheaper townhouses in an area could lead to less building of more expensive single-family residences
When interviewing candidates for an administrative assistant's job, which of the following interview questions is legally inadvisable? a. What church do you attend? b. What are your strengths and weaknesses? c. What are your hobbies? d. Who do you think will win the Super Bowl?
a. What church do you attend?
A competitive environment is where...
a free market thrives
market price
a good or service that is at a price at which everyone wants the item
Focus group
a group of 8-10 potential customers who are asked for feedback on a good or service, advertisement, idea, or packaging
The main function of economics is to study_________. a. the exchange of goods and services between individuals, businesses, and nations b. the exchange of cultural information in a diverse society c. the stock exchange d. the exchange of diplomatic relations between nations e. the exchange of ideas about motivation and behavior in the workplace
a. the exchange of goods and services between individuals, businesses, and nations
Crowdsourced funding
allows a great number of people who believe in a company or product to contribute a small amount of money
Which of the following tracks the prices of goods and resources sellers use to create their products? a. GDP b. CPI c. PPI d. GNP
c. PPI
The specifics of carrying out tactical plans are ________. a. strategies b. internal strengths c. operational plans d. objectives e. contingencies
c. operational plans
Natural resources
the raw materials used to produce goods
Examples of services
1. haircuts 2. health care 3. car insurance 4. theatrical productions
Employers seek workers who have skills of...
1. interpersonal 2. communication 3. decision-making
What are the factors of production?
1. labor 2. natural resources 3. capitol 4. entrepreneurial talent 5. technology 6. intellectual property
Examples of demographic factors
1. race 2. ethnicity 3. gender 4. age 5. income distribution 6. sexual orientation
A not-for-profit organization uses any revenue to reward the management team True or False
False
Which of the following is NOT a common challenge facing most national companies? a. Undercaptialization b. A complex supply chain c. Complying with each state's different tax rates d. Differences in state laws
a. Undercaptialization
Tom is a college senior who would like to get a "green-collar" job when he graduates. Which of the following positions is he LEAST likely to apply for? a. a job as a manager at an oil refinery b. a job selling hybrid cars c. a job weatherproofing houses d. a job installing solar panels e. a job as a wind turbine engineer
a. a job as a manager at an oil refinery
Example of shopping goods and services
1. Clothes 2. Shoes 3. Television 4. Cameras 5. Stereos 6. Bicycles 7. Lawnmowers 8. Furniture 9. Major appliances 10. Hotel rooms 11. Airline services
Methods of internal recruitment
1. Company intranet 2. Staff notice boards 3. In-house newsletters 4. Staff meetings
Operating with a network organization means the company must be:
1. Highly flexible and innovative 2. Be able to respond quickly to threats and opportunities
B2B nature of the buying unit
1. More professional and rational purchase decision
Advantages of public relation
1. Often seen as more credible than advertising 2. Inexpensive way of reaching many customers
Business-to-Consumer (B2C) Online
1. Online intermediaries 2. Advertising-based models 3. Community-based models 4. Free-based models
What does human resource management do?
1. Planning for staff needs 2. Recruiting and hiring 3. Training and motivating 4. Evaluating 5. Compensating 6. Terminating and repositioning 7. Diversity issues 8. Work/lifestyle preferences 9. Global business considerations
The role of unions is declining in the United States because of...
1. Their success in improving working conditions 2. Decline in traditionally unionized industries
Purpose of labeling
1. To inform 2. To persuade
Why has globalization accelerated?
1. Trade and investment barriers 2. Technological innovations
What are the risks of globalization?
1. U.S workers can lose their jobs to foreign countries 2. increase international competition 3. fluctuate the value of the U.S dollar 4. security and patent protection concerns 5. unstable political climates
Disadvantages of a sole proprietorship
1. Unlimited liability 2. Potential difficulty in borrowing money
Societal Marketing Era
-Began in late 1960s and early 1970s -Challenged companies to work for the benefit of consumers and society while making a profit
General Agreement on Tariffs and Trade (GATT)
-Created in 1948 with 23 member nations -Negotiated international trade treaties -Replaced by the WTO in 1995
Cultural Challenges:
1. Aesthetics 2. Attitudes toward time and work 3. Religion 4. Language
Benefits of social media and research
1. Brand insights improved 2. Sales and revenues increase 3. Enhanced R and D 4. Reduced research costs 5. Shortened project duration 6. Less static marketing
Brand loyalty consists of
1. Brand recognition 2. Brand preference 3. Brand insistence
Pros to advertising
1. Builds brand awareness 2. Emphasizes product differentiation 3. Builds brand loyalty and brand equity 4. Informs and educates consumers 5. Increases sales and lowers prices
What are the forms of E-commerce?
1. Business-to-customer (B2C) 2. Business-to-business (B2B) 3. Consumer-to-consumer (C2C)
Marketing Research Process
1. Define the marketing need or opportunity 2. Develop the research design 3. Collect the relevant data 4. Analyze and interpret the data 5. Act on conclusions
Steps of strategic paln
1. Establish the corporate purpose by creating a mission statement, values, and goods 2. Perform SWOT analysis and identify internal strengths and weaknesses as well as external opportunities and threats 3. Formulate strategy through tactical planning 4. Implement strategy through operational planning
Customer-to-Customer (C2C) Online
1. Exchange through intermediary 2. Peer-to-peer exchange
Disadvantages of advertising
1. Expensive 2. Impersonal 3. Not good at closing a sale
Disadvantages of personal selling
1. Expensive 2. Not suitable if there are thousands of buyers
Cons of online advertising
1. Fear of spam, users may avoid clicking ads 2. Annoyance factor, users can be annoyed with popup ads and flashing ads 3. Click fraud, some companies hire other people to click on ads purposely to fill their invoice up
Example of specialty goods and services
1. Ferarri sports cars 2. Rolex watches 3. High-fashion designer clothing 4. Medical services 5. Legal services
Benefits of marketing
1. Form utility 2. Task utility 3. Time utility 4. Place utility 5. Ownership utility
Examples of brand association
1. Image 2. Product features 3. Usage situations 4. Organizational associations 5. Brand personality 6. Symbols
Marketing plan has 4 elements
1. Marketing objective 2. Situational SWOT analysis 3. Selection of a target market 4. Implementation, evaluation, and control of the marketing mix
Product pricing objectives
1. Maximize profits 2. Achieve greater market share 3. Maximize sales 4. Build traffic 5. Match status quo prices 6. Cover costs to survive 7. Create an image 8. Ensure affordability to all
What are the different ethical systems?
1. Moral relativism 2. Situational ethics 3. Judeo-Christian ethics
Advantages of internal recruiting
1. Morale booster 2. Less risk 3. Faster and less costly
Advantages of a partnership
1. More owners to contribute capital and effort 2. Shared managerial and financial responsibility 3. Utilize complementary skills 4. Easy to form 5. Business losses can offset personal income
What are the roles in Belbin's Team Roles?
1. Plant 2. Resource investigator 3. Coordinator 4. Shaper 5. Monitor evaluator 6. Teamworker 7. Implementer 8. Completer/finisher 9. Specialist
Prospecting
1. Pre-approach 2. Actual approach
Forecasting has information such as
1. Predicted sales 2. Current workforce skills 3. Technology changes 4. Use of temporary workers 5. Turnover 6. Retirement 7. Planned reassignments
Officer positions include
1. President/Chief Executive Officer 2. Chief Financial Officer 3. Chief Operating Officer
Consumer products
1. Purchased by households for personal consumption 2. Traded in consumer markets
Online advertising techniques
1. QR codes 2. Pay-per-click advertising 3. Contextual advertising
Advantages of social media
1. Reaches a large group of people quickly and with low cost 2. Can be used to establish customer relationships
Pros of online advertising
1. Reasonable cost, depends on frequency of use 2. Hitting target markets, contextual advertising reaches intended viewers 3. Tracking, companies keep records of who is clicking ads and where they are located
Purchasing process
1. Untrained buyers 2. Individual purchasing decision 3. Relatively simple buying decisions 4. Informal buying decision 5. Impersonal relationship between marketer and buyer 6. Mass advertising
Currency of Systems of CIO
1. Update hardware and software to current business needs 2. Introduce appropriate new technologies
A strategic plan answers what 3 questions?
1. Where is the company going? 2. What should the company focus on? 3. How will the company achieve its goals?
Types of full-service wholesalers
1. Wholesale merchants 2. Industrial distributors
What are examples of Green collar jobs?
1. a job selling hybrid cars 2. a job weatherproofing houses 3. a job installing solar panels 4. a job as a wind turbine engineer
Competition forces companies to
1. improve their product offerings 2. lower their prices 3. aggressively promote their brands 4. focus on customer satisfaction
Advantages of a corporation
1. limited liability 2. extended life and ownership transfer 3. raising capital 4. tax benefits
pros to a vertical organization
1. one person is in charge and has the most authority
Advantages of strategic alliance
1. pooled talents 2. shared costs and risks
How does an aging population challenge and pose opportunities?
1. poses opportunities to cosmetic lines making you look younger, retirement homes, and travel agencies 2. can challenge Social Security and Medicare
strategic plan...
1. sets the approach for achieving an organization's long-term goals and objectives 2. acts as a framework for decisions 3. assists in setting corporate benchmarks
Advantages of exporting
1. speed of entry 2. production site in lowest-cost location
Advantages of wholly owned subsidiary
1. total control over all operations 2. preservation of proprietary technology
An economy is defined by:
1. what is produced 2. how it is produced 3. who gets the finished product
AFL-CIO
1955 two larger labor unions united. American Federation Labor- Congress of Industerial Organization.
pareto chart
A combination bar and line graph that shows different categories of problems and the total number of problems
Example of product extension merger
Adobe and Macromedia
Opportunity knocks
An idea for a new company often starts with envisioning a product or service that isn't being offered yet
Example of number of suppliers
An increase in home builders increases the supply of new homes and decreases the cost of new homes
Changes in resource prices
An increase in resource prices increases the cost of production and reduces profits, thus lowering the incentive to supply a product
Example of use new labels or different container types
Coca-Cola 6oz bottles to 8oz cans
Data warehouses
Database systems that store vast amounts of data
Personal selling
Direct communication between a firm's sales force and potential buyers to make a sale and to build good customer relationships
Example of technical standard/bureaucratic
EU banned the importation of all animal meats in which steroids were used to stimulate growth
Benefits of comparative advantage
Each nation will have a greater quantity and variety of higher-quality products to consume at lower prices
What are examples of consumer-to-consumer?
Etsy, Craigslist, NextDoor
Example of horizontal merger
Exxon and Mobil, US Airways and American Airlines
A weak ethical focus in a company allows it to compete more aggressively True or False
False
According to the SBA, to be considered a small business, a company can have only one location. True or False
False
Crowdfunding is putting a request for funds on your Facebook page. True or False
False
Cyclical unemployment measures those out of work during the off-season, such as those employed in agriculture and snow, beach, or holiday-related industries. True or False
False
Employment at will means workers have increased job security. True or False
False
Entering a foreign market through a joint venture means you will eventually be operating independently in that market True or False
False
Association of Southeast Asian Nations (ASEAN)
Free trade agreement between Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia
Compressed workseek
In this arrangement a traditional five-day work week is condensed into four dats by allowing employees to work 4 ten hour days instead of 5 eight hour days
Trade (B2B) sales promotions
Incentives designed to push a product through the distribution system to final consumers
Entrepreneurs Organization (EO)
Industry-related conferences/seminars to connect business owners with experts in their industry for individual mentoring
Example of co-brand
Intel and Dell, AT&T Universal Mastercard, Healthy Choice Cereal by Kellog's
Brand association
Involves connecting a brand with other positive attributes
Consumer Bill of Rights
Made the following legal rights 1. the right to safety 2. the consumer's right to choose 3. their right to information 4. their right to be heard
Example of price fixing
Mark Whitacre, ran company ADM and stole millions of dollars from customers through price fixing
Comparative advantage
Means that a country can produce a good or service relatively more efficiently compared with other countries
Operational requirements of a corporation
Must have board of directors, corporate offices, annual meetings, and annual reporting
Which free trade agreements have been the most successful with free trade areas?
NAFTA and the EU
Example of inverted organization
News reporters
Examples of multinational enterprises
Nike, McDonalds, Coca-Cola
Example of primary data
Observation, Survey, controlled experiments, Questionnaire, Sample, focus groups, interviews, customer feedback,
Undercapitalization
Occurs when a business owner cannot gain access to adequate funding.
Truck wholesalers (truck jobbers)
Perform a selling and delivery function
Task utility
Performing a desired service
Advocacy advertising
Promotes an organization's position on a public issue
Globalization of markets
Refers to the movement away from thinking of the market as being the local market or the national market, but to the market being the entire world
Example of order influences
Representatives of pharmaceutical companies meet with doctors to encourage them to prescribe drugs manufactured by their companies
Support personnel
Sales people who focus on assisting current customers with technical matters
goals
The broad, long-term accomplishments an organization wishes to attain within a certain time frame
Globalization of production
The other facet of globalization, refers to the trend of individual firms moving production to different locations around the globe to take advantage of lower costs to enhance quality
Addition of partners
The partnership agreement also helps sell out the requirements for new partners entering the partnership
Example of information sites
TheMedica.com
Apprentice training program
Trains individuals through a combination of classroom or formal instruction and on-the-job training.
Goal setting and planning
Translating organizational or departmental goals into specific employee goals, which includes an employee's development of the steps necessary to achieve goals
A partnership agreement should include procedures that outline how a partner's departure from the business will be handled as well as how new partners are to be brought in True or False
True
Barbara owns a bakery in Boston. When her business reached a certain level of profit, she decided to open three more bakeries in the area. Many businesses, like Barbara's, are able to expand as they earn more profits. True or False
True
Being part of a franchise allows you to have access to tried-and-true marketing strategies. True or False
True
Business intelligence software supports decision making by presenting visual, interactive views of the state of a business True or False
True
Federal laws like the ADA and the ADEA must be followed by every business when hiring. True or False
True
The augmented product provides additional value to a customer's purchase. True or False
True
To celebrate the first day of summer, an ice cream shop dropped the price of its cones to 10 cents and sold out of them within two hours. This created a shortage of ice cream cones. True or False
True
Trade barriers include tools like embargoes, quotas, and local content requirements True or False
True
Product extension merger
Two companies selling different but related products in the same market
Vertical merger
Two companies that have a company/customer relationship or a company/supplier relationship
Conglomeration
Two companies that have no common business areas merge to obtain diversification
Market extension merger
Two companies that sell the same products in different markets
Complementary goods
Two goods that provide more utility when consumed together than when consumed separately
Example of joint ventures
Walmart jointed with Indian soap company to sell soap in India
Brand extension
When companies add length to their product lines to widen their product mix
Example of high traffic approach
Yahoo!
Corporate Social Responsibility (CSR)
a company's obligation to conduct its activities with the aim of achieving social, environmental, and economic development
motivation
a complex mental state that plays a key role in determining the success of a business and the satisfaction of its employees
nonconvertible currency
a currency that can't be converted into another currency in the foreign exchange market
currency depreciation
a decrease in the exchange rate of a nation's currency
countertrade
a form of international barter, swapping goods for other goods out of necessity or for enhanced profitability
business plan
a formal document that states the goals of the business as well as the plan for reaching those goals
integrated marketing communication
a strategy to deliver a clear, consistent, and unified message about a company and its products to customers at all contact points
Market segment
a subgroup of potential customers who share similar characteristics and therefore have similar product needs and preferences
Ponzi scheme
a swindle whereby investors believe their money is being invested and earnings returns for them but is instead being siphoned off by the schemer
free floating exchange rate system
a system in which the global supply and demand for currencies determine exchange rates
Naima and Steve both make high-end custom guitars. They decide that they should merge in order to become more dominant in the marketplace. What type of merger are they going to perform? a. A horizontal merger b. A market extension merger c. A product extension merger d. A vertical merger e. A conglomeration
a. A horizontal merger
In many organizations, the human resource manager does not have authority over hiring of employees in departments such as accounting or manufacturing but instead works with the managers of those departments to offer guidance and assistance. What type of organization would this reflect? a. A line and staff organization b. An inverted organization c. A matrix organization d. A network organization e. A reverted organization
a. A line and staff organization
The ratio at which Australian dollars are converted into Indonesian rupiah is known as the ________ rate. a. Exchange b. Export c. Depreciation d. Interest e. International
a. Exchange
__________ unemployment refers to a temporary state of unemployment in which workers move between jobs, careers, and locations. a. Frictional b. Structural c. Seasonal d. Cyclical e. Circumstantial
a. Frictional
Jaden and Noel are starting a computer repair business together. Jaden insists on outlining rules for the departure of partners in the partnership agreement, although Noel does not think it is necessary. Which of the following statements might Jaden use to explain his insistence to Noel? a. Provisions to remove a partner's ownership interest are necessary so the business would not have to end. b. Determining the allocation of profits to new, junior partners is important to eliminate future potential conflicts c. Responsibilities must be clearly delineated to avoid one partner doing more or less work than others d. As the partnership matures and ages, defining how profits and losses will be distributed must be made e. In a partnership of two, where the possibility of a deadlock is likely, we should provide for a trusted associate to act as an acting third "partner" whose sole responsibility is to be the tiebreaker
a. Provisions to remove a partner's ownership interest are necessary so the business would not have to end.
Which is a benefit of cooperatives? a. The power of the group enables them to negotiate for goods and services at favorable prices b. They are exempt from paying federal and state taxes c. They are established to serve the public interest rather than make a profit d. They provide services to people with a variety of interests and needs
a. The power of the group enables them to negotiate for goods and services at favorable prices
In which industries would you find a heavy concentration of small businesses? a. Veterinary services and Florist b. Aluminum manufacturing c. Florist d. Veterinary services
a. Veterinary services and Florist
U.S. exporters prefer a(n) ________ dollar. a. Weak b. Exchange c. Appreciating d. Strong e. Strengthening
a. Weak
The performance review process often includes all of the following except a. an evaluation of the employee's social standing in the work environment b. an assessment of the employee's relative to the job's performance standards c. specific feedback on how to enhance a positive performance d. the employee's job expectations
a. an evaluation of the employee's social standing in the work environment
Which of the following events would MOST likely change the racial demographic of a population? a. an influx of immigrants b. the green movement c. a political scandal d. an aging population e. an economic slump
a. an influx of immigrants
_________ are the specific laws that govern the products and processes of an industry a. legal regulations b. ethical standards c. ethical codes d. social standards e. legal violations
a. legal regulations
A_________ is a graph that displays the values of two variables to see if there is a relationship between the variables. a. scatterplot b. run chart c. check sheet d. control chart e. histogram
a. scatterplot
About 80 percent of small businesses in the U.S. are concentrated in the _____ sector. a. service-producing b. retail c. professional d. goods-producing
a. service-producing
An LLC is formed by professional corporations such as...
accountants, attorneys, doctors, and professionals who want to be away from partner liability
leveraged buy outs (LBO)
acquiring group borrows 90% of funds necessary for the acquisition
Pay-per-click advertising
advertisers pay for the number of times a web surfer clicks on their ad
Example of consumer preferences
advertising and fads, remember when people waited in line to buy a Wii system
Middle managers communicate with
all levels of management and act as liaisons among groups
Online training/distance learning
allows employees to take college classes on the Internet at their convenience, enabling employees to obtain specific job-related education
telecommuting
allows employees to work in the office part time and work from home part time
currency appreciation
an increase in the exchange rate of a nation's currency
line and staff organization
an organization system that has a clear chain of command but that also includes functional groups of people who provide advice and specialized services
union locals
are created by workers of the same industry, company, region, or business sector
Pension plans
are financial programs that provide income to individuals in their retirement
Employee benefits
are indirect financial and non financial payments an employer offers that supplement cash compensation
competition
arises when two or more businesses vie with one another to attract customers and gain an advantage
Boston College Center for Corporate Citizenship
assesses corporate responsibility and publish their findings
All of the following are legal challenges to conducting business in a foreign country EXCEPT ______. a. Contracts b. Cross-Cultural Awareness c. Patents and copy rights d. Property Rights e. Product safety and liability standards
b. Cross-Cultural Awareness
Tools used to analyze data include a. DBMSs, ERP, and ROI b. DSSs, OLAPs, and executive information systems c. OSHAs and C2Cs d. PPCs, ISs, and B2Bs
b. DSSs, OLAPs, and executive information systems
_______ occurs when there is only one provider of a service or product and no substitutes for the service or product exist. a. a duopoly b. a monopoly c. an oligopoly d. perfect competition e. monopolistic competition
b. a monopoly
Rocco Valentino shops only at Walmart. Because Walmart rarely has sales, Rocco believes he'll receive the lowest price without further hassles. This type of pricing strategy is known as __________pricing. a. dynamic b. everyday low c. competition-based d. penetration
b. everyday low
In which part of the business cycle would the Federal Reserve be most likely to increase the discount rate to discourage banks from borrowing? a. trough b. expansion c. peak d. recession e. depression
b. expansion
Karen is an accountant for a large construction company. Her supervisor decides to reward Karen's excellent performance with a one-time bonus. To Karen, this could be a(n)_________. a. intrinsic motivator b. extrinsic motivator c. resonance motivator d. virtual motivator e. self-actualization motivator
b. extrinsic motivator
Since Ben opened his own computer repair business, he has had to take a lot of time off to care for his mother who has been seriously ill. In his old job, he would not have been allowed to take so much time off. What advantage of owning a small business is BEST displayed by Ben's situation? a. financial independence b. flexibility c. innovation d. opportunity e. self motivation
b. flexibility
In a partnership, the type of partner that is responsible for all claims against the company is called a(n) _____________. a. investor b. general partner c. unlimited partner d. limited partner e. sole partner
b. general partner
Robert wants to upgrade his real estate company's computer systems. Which of the following factors of production would Robert find LEAST useful for his project? a. financial capital b. real capital c. technology d. labor e. human resources
b. real capital
As a general rule, decision making in a(n) _______ is centralized, and the power to make decisions lies with top-level managers. a. horizontal organization b. vertical organization c. matrix organization d. network organization e. inverted organization
b. vertical organization
In order to enter the Spanish market, a Moroccan firm establishes a store that is entirely owned by Moroccan firm. This is an example of a(n)____________. a. strategic alliance b. wholly owned subsidiary c. exporting agreement d. joint venture e. contract manufacturing arrangement
b. wholly owned subsidiary
Gen-Xers
born between 1965-1981 "independent thinkers" who value family life
Millennials
born between 1982-2002 value work-life balance but have very high expectations for achievement in their careers
Business-to-business markets
businesses purchase goods and services from other businesses
Online intermediaries
businesses that buy goods/services and sell them to consumers
Not-for-profit organizations
businesses that do not pursue profits, but instead seek to service the community through social, educational, or political means
Green industry
businesses that provide environmentally friendly products and services
open market operations
buying and selling U.S Treasury and federal agency bonds on the "open market"
If Mom's outdoor clothing store combined with Dad's camping equipment store to form Mom's and Dad's Outdoor Store, which of following best describes the type of transactions that occurred between the two companies? a. A vertical merger b. A product extension merger c. A horizontal merger d. A conglomeration
c. A horizontal merger
Which statement about a Theory Y management style is FALSE? a. People see work as a natural part of life b. Managers allow employees to create their own motivation c. People mainly want security in their jobs d. People will inherently seek responsibility e. People mainly seek intellectual stimulation in their work
c. People mainly want security in their jobs
Corporate social responsibility is mainly concerned with how a company affects the ___________. a. family b. investor c. community d. vendors e. stockholders
c. community
When U.S. soldiers returned home from World War II, they influenced the marketing of products by ________. a. refusing to purchase any products made in the United States b. responding to the "hard sell" tactics companies were using to push products they didn't want c. getting married, starting families, and having the willingness to spend money d. being easily convinced to purchase new products on the market e. helping to create a seller's market
c. getting married, starting families, and having the willingness to spend money
An organization where power is distributed and employees work in groups or teams is a __________ organization. a. network b. vertical c. horizontal d. tall e. virtual
c. horizontal
A business is in legal compliance if a. it follows all the laws of which it is aware b. it cannot be proven guilty of violating any laws c. it meets all local, state, and federal regulations d. it hires only employees who do not have criminal records
c. it meets all local, state, and federal regulations
Trudy and Yvonne have come together to run Salford Children's Center. The center receives state and federal grants, and whatever is left over is put back into the center to improve and expand its services. Salford Children's Center would best be described as a(n) a. partnership b. LLC c. not-for-profit organization d. sole proprietorship
c. not-for-profit organization
Which of the following methods do not-for-profit corporations primarily use to generate revenues? a. withholding employee's salaries b. scaling down big-budget projects c. organizing fund-raising events d. issuing shares of corporate stock e. not providing employees with health insurance
c. organizing fund-raising events
An example of Herzberg's hygiene factors is a. feeling of belonging b. creativity c. safe working environment d. respect
c. safe working environment
Electronic monitoring
can be used to track emails, browsing histories, and cell phone usage
economic indicators
certain statistics about economic activities
Misuse of personal information
companies conduct marketing surveys to find out the marital status, annual income, age, sex, race, and other characteristics
multinational enterprises
companies that have operations in more than one country
culture
complex set of values, behaviors, lifestyles, arts, beliefs, and institutions of a population that are passed on from generation to generation
Place (distribution)
component of the marketing mix refers to all the methods involved in getting a product into the hands of customers
publicly owned corporation
corporations that are regulated by the Securities and Exchange Commission (since shares of ownership can be traded on public stock exchanges)
Large publicly-owned corporations
corporations whose stock are owned by more than 25 stock holders and are regulated by the Securities and Exchange Commission
Example of a nonconvertible currency
currency in Morocco
Steve Jobs, former CEO of Apple, was well known for his ability to inspire employees and customers alike to believe in the company's products and services. The love for Apple's products by customers and employees alike was so strong, their passion for the company was termed "The Cult of Apple." What type of leader was Steve Jobs? a. A laissez-faire leader b. An autocratic leader c. An affiliative leader d. A visionary leader e. A democratic leader
d. A visionary leader
Which of the following statements is TRUE? a. The Small Business Administration provides tax credits for small businesses b. The Small Business Administration is composed entirely of volunteers c. The Small Business Administration works to increase regulatory requirements for small businesses d. The Small Business Administration offers free online training to small business owners e. The Small Business Administration provides administrative services to small businesses
d. The Small Business Administration offers free online training to small business owners
Why might a potential business owner want to establish a business as a sole proprietorship? a. The owner can use personal assets to satisfy any business liabilities b. The owner can take into consideration the opinions of other business owners c. The owner can generate a separate tax return for business expenses d. The owner is not required to file legal paperwork to start up business
d. The owner is not required to file legal paperwork to start up business
Christina supervises a group of employees at a company that just went through a downsizing. Many other supervisors are no longer with the company and their employees have been assigned to Christina. Her group has doubled in size and there are some hard feelings among the employees. Christina decides to hold group breakfast meetings once a week to connect people to one another and to boost morale. She is an empathetic leader who listens to her employees and helps solve conflicts. Which of the following best describes Christina's leadership style? a. visionary b. autocratic c. pacesetting d. affiliative e. democratic
d. affiliative
A(n)__________ business is one that has at least 20 percent sales growth per year for five years, starting with a base revenue of at least $100,000. a. cheetah b. hyper-growth c. consistent-growth d. gazelle e. enterprise zones
d. gazelle
A multination company___________. a. makes a multitude of products domestically that it sells only within its own nation b. cannot serve only one country c. is only required to follow the laws of its home country d. may be challenged to language barriers e. must make products in several countries
d. may be challenged to language barriers
A U.S. company exports products to Russia. The prices of the U.S. products in Russia are going up because the value of the dollar has __________ against Russia's currency. a. depreciated b. equalized c. fallen d. risen e. stabilized
d. risen
Dan is excited to start marketing and selling his new indoor practice hockey tarps and would like to start today. He already has several hockey associations waiting to make purchases. Dan's best option for starting his business quickly and hassle free is a(n) ________. a. S corporation b. C corporation c. general partnership d. sole proprietorship e. master limited partnership
d. sole proprietorship
Democratic
delegating authority and involving employees in the decision making
Ethics training programs
designed to boost the awareness of their employees about ethical issues, training occurs throughout all levels of the organization
High traffic approach
designed to reach a wide audience with ads on popular sites
Top managers communicate with
directors, investors, business community leaders, and middle managers
arbitration
dispute is sent to another person for a decision and both parties agree in advance the arbitrator's decision is final
Anyone who is interested in buying a franchise must...
do homework upfront
unethical behavior
does not conform to a set of approved standards of social or professional behavior
Jodie owns a small business that is growing fast. She wants to put a document together that lets those within and outside the organization understand the company's purpose, goals, and philosophies. What should Jodie create? a. An operational plan b. A SWOT analysis c. A company code of ethics d. A strategic plan e. A company mission statement
e. A company mission statement
Which of the following is NOT an environmentally based corporate social responsibility issue? a. moving a "dirty industry" overseas where environmental regulation is lacking b. trucking toxic substances to Mexico to regions where it is legal to recycle them c. exposing employees to potentially hazardous materials d. allowing chemical contaminants to enter the local groundwater system e. allowing a negative corporate culture to adversely affect employees
e. allowing a negative corporate culture to adversely affect employees
All of the following contribute to accelerating globalization EXCEPT______________. a. a growing role for developing nations b. a rise in non-U.S foreign direct investment c. an increase in democratization d. a rise in multinational enterprises e. an increase in trade and investment barriers
e. an increase in trade and investment barriers
As a chief information officer, Bob looks for ways that his company's technological resources can generate bigger returns on its information technology investments. Which aspect of the CIO's role is he addressing? a. e-commerce b. system design c. currency of systems d. privacy and security e. budget
e. budget
Lizzie is the CEO of a large corporation that offers accounting services to several companies. She has tried to acquire her closest rival, but her rival's management is opposed to the idea. In order to gain a competitive edge, Lizzie starts a campaign to persuade her rival company's shareholders to vote out its existing management in the hopes of replacing it with a management team more sympathetic to the goals of the acquiring company. Which method of acquiring a company is Lizzie using? a. tender offer b. synergistic value c. conglomeration d. cooperative takeover e. proxy fight
e. proxy fight
As a last resort, union workers may choose to _________ and agree to stop working. These actions gain considerable media publicly, especially when the workers__________ by walking outside the workplace with signs that reflect employee grievances. a. lockout; boycott b. strike; boycott c. boycott; picket d. picket; strike e. strike; picket
e. strike; picket
Technical skills may include____________. a. the ability to recruit new employees b. the ability to monitor the performance of employees c. the ability to delegate work to others d. the ability to create and communicate goals e. the ability to operate a printing press
e. the ability to operate a printing press
Socialism is similar to communism in that ________. a. the government provides all of the social services b. the government does not intervene in industry c. the government does not charge taxes d. the government fails under economic stress e. the government distributes goods and services
e. the government distributes goods and services
Teresa and Luis are getting married next month. Which of the following elements of their wedding does NOT require a natural resource for its production? a. the wedding rings b. the bridesmaids' dresses c. the wedding cake d. the table centerpieces e. the wedding vows
e. the wedding vows
A sole proprietorship is the....
easiest to set up and the most common form of business ownership
Decision support systems
enable companies to analyze collected data so they can predict the impact of business
mentoring
enables experienced managers to work with inexperienced managers
period of existence of a partnership
ends upon death or withdrawal of a partner unless otherwise provided for in partnership agreement
Period of existence of a sole proprietorship
ends when proprietor dies or leaves business
Businesses
entities that offer products to their customers to earn a profit
mentors
experienced individual employees who hep a less experienced person by explaining how to perform specific tasks, creates opportunities to learn new skills, and counsel about the consequences of particular actions and decisions
Extrinsic motivators
external motivating factors that managers can control
O in SWOT
external opportunities, foreseeable external changes that could favorably affect a company's competitive capability
T in SWOT
external threats, external conditions that could negatively affect a company's competitive capability
determinants of demand
factors that affect the demand for a product
determinant of supply
factors that change in supply
privately held/closed corporations
fewer shareholders and are involved in the management and daily operations of the business
Grants
financial awards offered by federal and state governments and some private organizations
worker buyout (golden parachutes)
financial incentives to encourage older workers to retire
A limited liability corporation is...
flexible and can work for a business with one or more owners
Examples of work/life benefits
flexible schedules, relaxed atmospheres, child-care, and fitness/gym programs
System thinkers
focus on the entire process and are able to see the whole picture when they set up their businesses
American Federation of Labor(AFL)
founded in 1886 to protect skilled leaders
Management of a sole proprietorship
full control of management and operations
Raising capital of a partnership
funding raised through partner contributions
examples of collective business decisions
general level of unemployment
In limited partnership there are two kinds of partners
general partners and limited partners
substitute goods
goods that can be used in place of other goods
Laws are created in order to
govern the products or processes of a specific industry
supply curve
graph that represents the law of supply by showing the price and quantity supplied
flow state
happens when you are completely involved and focused on what you're doing
example of base character
honest, reliable, kind, self-centered, aggressive, courageous
technology changes
improvements in technology enable suppliers to produce their goods or services more efficiently and with fewer costs
free trade
in which countries produce and sell products anywhere in the world, exporting pollution to less developed countries
Psychological influences
include differences in the buyer's motivation, perception, attitudes, and learning
Situational influences
include the physical surroundings, social surroundings, and the type of product purchased
Marketing mix influences
include the product, price, promotion, and distribution aspects of purchases
Equipment(installations/capital items)
includes all the physical facilities of a business
Marketing environment
includes environmental influences beyond a firm's control that constrain the organization's ability to manipulate its marketing mix
public capital
includes roads, bridges, dams, electric grid lines, and telecommunication satellites
Knowledge workers
individuals valued for their ability to interpret and analyze information
360-degree appraisal
input for the appraisal is solicited, usually anonymously, not from just a person's managers but also from coworkers, customers, and subordinates
Spyware
installed on your computer without your knowledge
goodwill
intangible assets represented by businesses' name, customer service, employee morale, and other factors
Services
intangible products that are bought or sold
Price skimming
involves charging a high price for a product initially and then lowering the price over time
franchising
involves selling a well-known brand name or a proven method of doing business to an investor in exchange for a fee and a percentage of sales or profits
joint ventures
involves shared ownership in a subsidiary firm
Example of complementary goods
iphones and apps in appstore
consumer price index (CPI)
is a benchmark used to track changes in price of goods and services that consumers purchase over a period of time (shifts after economy changes)
sole proprietorship
is a business owned and usually operated by a single individual (any number of employees)
social environment
is an interconnected system of different demographic factors
middle managers
is made up of controller, sales manager, marketing manager, and operations manager; tactical planning and coordinating specific plans with the established strategic vision
top managers
is made up of corporate officers, CEO, or president; generate plans, long-term goals, mission statement, and vision for the organization
human resource management
is the organizational function that deals with the people in business
why does the government increase taxes?
it slows down the growth of businesses and the economy by reducing the amount of money in the system. It reduces inflation
EU's success is due to
its demonstrated commitment to the free flow of goods, services, capital, and people across borders in Europe
Scientific Management
managers use scientific study to determine the best methods to complete tasks and then train employees these methods to increase productivity
monopolistic competition
many buyers and sellers and little differentiation exists between the products, but there is a perceived difference among consumers (usually difference in price)
perfect competition
many buyers and sellers of virtually identical products , no barriers to market entry
Demographic segmentation
market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education
Geographic segmentation
market segmentation according to geographic characteristics
Unlimited liability
means that if business assets aren't enough to pay business debts, then personal assets (house, investments, retirement plans) can be used to pay the balance
unlimited liability
means that if business assets aren't enough to pay business debts, then personal assets will be used to pay for it
cross-functional team
members are selected across a range of critical functional divisions of a business
Raising capitol of a limited-liability company (LLC)
members may sell interests to raise capital; there may be operating agreement restrictions
Equal Employment Opportunity Commission (EEOC)
monitors business compliance by investigating complaints about discrimination, sexual harassment, or violations of the ADA in a workplace
Affiliative (Laissez-Faire)
more advisory in style, encouraging employees to contribute ideas rather than specifically directing their tasks
Decrease in discount rate->
more money for lending at lower rates->stimulates the economy
Decrease in reserve requirement->
more money for lending-> stimulates the economy
Fed buys securities through open market operations->
more money for lending->stimulates the economy
Example of e-procurement
most states have e-procurement websites companies can use to bid on state projects
Example of CRM
most stores send e-mails with coupons and information about their sales
Exhibit emotional intelligence
most successful leaders possess a high degree of emotional intelligence, which is the ability to understand both one's own and other emotions
Inspire a shared vision
motivate people to care about the corporate goals or an important mission
When would a contingency plan be useful?
natural disasters
demand
need or want for an item
acquisition
occurs when one company completely takes over another company
trade surplus
occurs when the value of a country's exports exceeds the value of its imports
merger
occurs when two companies come together to form one company
Personal influences
on a buyer's consumption choices are shaped by their age, economic situation, lifestyle, and personality
Green economy
one that factors ecological concerns into business decisions
Specialized industry portals
online gateways to major sources of information, discussion forums, and product listings
oligopoly
only a few sellers offer similar or identical products
C corporation...
owners have limited liability for the debts of the business
Partnership the partners...
participate in management and accept unlimited liability
Control
people like to make decisions on their own and wouldn't be satisfied working for someone else
Contingent workers
people who are hired on an as-needed basis and lack status as regular full-time employees
structural unemployment
permanent unemployment that occurs when an industry changes in such a way that those jobs are terminated completely
termination
permanently laying off workers due to poor performance or a discontinued need for their services
Frank and Lillian Gilbreth used
photography to study employee work patterns and then analyzed these patterns to increase productivity
Goods
physical products that a business sells
Levels of Maslow's Hierarchy of Needs
physiological needs, safety and security, love and belonging, self-esteem, self-actualize
inverted organization
power is held in the employees, inverted pyramid
Maslow's Hierarchy of Needs
primary needs are met first before higher-level needs are addressed
Environmental scanning
process of surveying the market environment to assess external threats and opportunities
Niche portals (vertical portals)
provide expanded information on a specific product or market
multinational business
provide goods or services to international consumers or have suppliers or production facilities in other countries
Information sites
provide information about a particular industry
Social class
refers to a combination of factors such as education, income, wealth, and acquisition
Online advertising
refers to any form of advertising that uses the Internet to market its message to customers
Legal compliance
refers to conducting a business within the boundaries of all the legal regulations of that industry
e-procurement (electronic procurement)
refers to the online purchase and sale of products and services between businesses
Advertising-based models
rely on banner ads on other websites to attract customers
Fee-based models
require users to pay a subscription fee to view their content
Social entrepreneurs
set out to create innovating solutions in the social sector
Directors or board of directors
set policy for the corporation and make the major business and financing decisions, elect corporate officers
organizational chart
shows how groups of employees fit into the larger organizational structure
Time management skills
skills associated with the productive use of time
apportioned ownership interest
stock certificates that identify the number of shares they own
What type of plans does the middle management create?
tactical plans and contingency plan
Off-the-job training and development
techniques that require employees to participate in outside seminars, university-conducted programs, and corporate universities
Capital contributions
the amount of capital, including money, equipment, supplies, computers, and any other tangible thing of value that each partner contributes to begin the business and how additional capital can be added
CPI market basket
the collection of goods and services that the typical consumer buys
strategic plan
the course of action established by top managers, it reflects where the company wants to be in the future and how they are going to get there
coaching/understudy program
the employee works directly with senior management in planning and other managerial functions
Belbin's Team Roles
the idea that for a team to function effectively it needs key roles to be performed by team members—each role contributing a specific skill or behavioral dimension to the team dynamics; Belbin identified nine specific roles
synergy
the idea that when two companies combine, the result is better than each company could achieve individually
Distributors/wholesalers
the middleman in a distribution channel
reserve requirement
the minimum amount of money banks must hold in reserve to give their depositors who want to withdraw it
groupthink
the mode of thinking that occurs when the desire for harmony in a decision-making group overrides a realistic appraisal of alternative
Difference between sole proprietorship and partnership
the number of contributing resources and sharing the profits and losses of the business
controlling (or monitoring)
the process by which managers measure performance and make sure the company's plans and strategies are being or have bee carried out properly
Planning
the process of establishing goals and objectives and determining the best ways to accomplish them
Market segmentation
the process of separating the broader market into smaller markets that consist of similar groups of customers
organizing
the process of structuring the capital, personnel, raw materials, and other resources to carry out the plans in a way that best matches the nature of the work
management
the process of working with people and resources to accomplish the goal of the organization
controlling
the process that ensures that the plans and strategies set in place by management are properly carried out, ensures the company is working towards short and long term goals, identifies and corrects errors in the system
factors of production
the resources it uses to produce goods and services
exporting
the sale of a domestically produced good in a foreign market
economics
the study of how individuals and businesses make decisions to best satisfy the wants, needs, and desires with limited resources
organizational psychology
the study of how to create a workplace that fosters motivation and productivity among employees
Actual product
the tangible aspect of the purchase that you can touch, see, hear, smell, or taste
Gross National Products (GNP)
the total value of goods and services produced in a nation during a specific period
horizontal organization (flat organization)
the traditional pyramid is flattened
Consumer behavior
the ways individuals or organizations search for, evaluate, purchase, use, and dispose of goods and services
Good with people
they possess strong leadership and communication skills
Brokering sites
third-party sites that act as liaisons between providers and potential buyers of goods or services
Affiliative leadership is appropriate
to heal rifts in a team; to motivate during stressful times or strengthen connections
cyclical unemployment
unemployment that occurs when firms must cut back their work forces when there is a downturn in the business cycle (when demand for goods and services are low)
Customer Relationship Marketing Era
using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained
Service Corps of Retired Executives (SCORE)
volunteers that offer workshops and counseling to small businesses at no cost
Motivated to succeed
want to provide for themselves and their families or they want personal fulfillment
Companies prefer____________, consumers prefer__________.
weak dollar, strong dollar
Angel investors
wealthy individuals willing to put up their own money in hope of a profit return (invest in projects with less money than venture capitalist)
Company website
websites are designed to sell goods or services to business clients rather than household consumers
price fixing
when a group of sellers agree on a fixed price to overcharge consumers
line organization
when all authority and responsibility can be traced in a direct line from the top executive down to the lowest employee level in the organization
shortage
when demand exceeds supply
bartering
when people trade goods or services without an exchange of money
business cycle
when the economy goes through periodic increases of inflation and decreases of inflation
sick-outs
when union members are not officially on strike but call in sick
Example of a good and service
when you order a steak at a restaurant you're paying for the steak and the service of preparing, cooking, and serving the steak
tender offer
where the acquiring firm offers to buy the target company's stock at a higher price than its current value to induce shareholders into selling
capital flight
where the country's domestic funds are exchanged into foreign currency outside the country
belief origins
where your beliefs came from and your character came from
code of ethics
written statement of a company's commitment to certain ethical practices
Parts of Management
1. Planning 2. Organizing 3. Controlling/Monitoring 4. Leading
Example of specialized professional services
1. Advertising 2. Management consulting 3. Legal 4. Accounting
Examples of demographic segmentation
1. Age 2. Race 3. Religion 4. Family size 5. Ethnicity 6. Gender 7. Income 8. Education 9. Labels written in English and Spanish
pros to a horizontal organization
1. each team has more responsibility for the outcome of its work 2. less competition over power, but a push toward collaborative work 3. employees have more responsibility and decision-making authority
CPI market basket can help determine what?
1. how the economy is doing 2. how inflation rates are affecting spending habits in specific areas of the economy
most companies want to achieve a goal in...
5 years
franchisee
A person who buys a franchise
why does the government decrease taxes?
A tax cut can help stimulate the economy but the amount of money entering the system depends on how much consumers save and spend
example of oligopoly
AT&T, T-Mobile, Sprint, Verizon,
Predatory pricing
Charging very low prices with the intent of destroying competition
Implementer
Disciplined and reliable
Example of countertrade
General Motors, Good Year, Coca Cola, and Pepsi
Example of acquistion
Google bought Android
Actual approach
Initial contact
What is an example of Not-for-profit organizations
NRA
Example of a market extension merger
NationBank (East Coast and South) merged with Bank of America (West Coast)
Full-service wholesalers
Provide a full line of services such as carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistant
Business to business products
Purchased by businesses for further processing, resale, or supplies
Interpersonal skills
Skills that promote relationships with other people
Example of contextual advertising
Someone reading a snowboarding blog might see a Red Bull ad featuring snowboarder Shawn White
a social networking site that connects people with others that they know through college, graduate school, or professional affiliations
Saadia is responsible for the overall operation of the company for which she works, and reports directly to the Board of Directors. Which of the following is most likely Saadia's job title? a. Chief executive officer b. Chief financial officer c. Chief security officer d. Chief operating officer e. Chief technology officer
a. Chief executive officer
Most countries operate under a(n) ________ exchange rate system. a. Free-Floating b. Fixed c. Stable d. immeasurable e. Inflexible
a. Free-Floating
Which of the following international organizations promote free trade? a. GATT b. The euro c. The IMF d. All of the above
a. GATT
What BEST determines the level of competition? a. the existence of complementary goods b. the number of substitutes for a certain good or service c. the number of complementary products or service d. the degree of population change e. the degree of change in income levels
a. the existence of complementary goods
Small Business Administration (SBA)
an independent agency of the federal government that was formed to aid, counsel, assist, and protect the interests of small business
Informediary
an information site that gives businesses information about current standards and developments
Calvert Investment Company
assigns companies scores based on environment, workplace, business practices, human rights, and community relations
When is the annual budget for an organization developed? a. during strategic planning b. during tactical planning c. during operational planning d. during contingency planning e. during SWOT analysis
b. during tactical planning
What type of organization do most startup companies utilize? a. A tall organization b. A line organization c. A matrix organization d. A flat organization e. An inverted organization
b. A line organization
Database management systems are MOST useful because___________. a. the company can hire more people to collect and analyze the data b. they help businesses manage vast amounts of data collected in the process of doing business c. information technology managers prefer to use software systems rather than qualitative systems d. clients are impressed by firms with high technology budgets e. customers prefer companies that rely on database management systems
b. they help businesses manage vast amounts of data collected in the process of doing business
According to Herzberg's motivator-hygiene theory, responsibility, recognition, promotion, and job growth are all __________ factors. a. intrinsic b. hygiene c. motivator d. extrinsic e. safety
c. motivator
as price decreases
demand increases
A group of similar products marketed to one general market is called a product ____________. a. width b. mix c. length d. variety e. line
e. line
The middlemen in a distribution channel are sometimes called ________. a. clerks b. consumers c. assembly line workers d. salespeople e. wholesalers
e. wholesalers
Primary data
raw data collected by the researcher
Realistic
reasonable given resources available
Innovative
recognize opportunity niches, introduce new products, or make improvements to existing products
Taxation of a corporation
separate taxable entity, corporation files its own tax return
Intrapreneur
someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization's resources to try to realize it
liability
the obligation to pay a debt
Minimizing a company's carbon footprint is part of a plan to increase corporate philanthropy True or False
False
The supply of services is not part of the study of economics because it does not involve the exchange of goods. True or False
False
When a company follows a strong CSR program, it will restrict opportunities for growth True or False
False
Knockoff brands
Illegal copies or cheap imitations of a product
Semicontrolled messages
Messages are placed on websites, in chat rooms, blogs, and sponsorships
Specialty goods and services
Products that buyers are willing to spend a great amount of time and effort searching for particular brands/styles
When a car is purchased, form utility refers to the value customers receive from a. Owning the car b. The styling and function of the automobile c. Ready availability and speed with which the dealer made the car available for purchase d. Close proximity to the car dealership
a. Owning the car
Market information
Wholesalers assume the risks associated with storage and transportation
Example of wholesalers
Your local grocery store probably purchased Tide laundry detergent on its shelves from a wholesaler who bought it from Procter and Gamble
Which of the following is NOT a primary source of data? a. customer feedback b. accounting records c. sampling d. interviews e. controlled experiments
b. accounting records
Diane Pollock was recently promoted to middle management based on her excellent interpersonal skills. These skills help her because one of the primary roles of a middle manager is to ________. a. understand how world events will affect the company's growth b. act as a liaison among different groups in the company c. develop software to maximize the company's efficiency d. draft a handbook that outlines the company's rules and regulations e. track carefully how employees time is spent
b. act as a liaison among different groups in the company
What is the annual budget for an organization developed? a. during contingency planning b. during tactical planning c. during SWOT analysis d. during operational planning e. during strategic planning
b. during tactical planning
________ refers to the application of products like Facebook in a corporate setting. a. Cloud computing b. Enterprise social networking c. Crowdsourced funding d. Executive information system e. Viral marketing
b. Enterprise social networking
_______ occurs when there are many buyers and sellers of products that are virtually identical and any seller can easily enter and exit the market. a. A duopoly b. Perfect competition c. An oligopoly d. Monopolistic competition e. A monopoly
b. Perfect competition
At which point in the business cycle is the economy when GDP declines for two or more successive quarters? a. Peak b. Recession c. Trough d. Expansion or recovery
b. Recession
Which marketing era occurred during the Great Depression when manufacturers almost had to force consumers to purchase their products? a. Production concept era b. Sales concept era c. Marketing concept era d. Customer relationship era
b. Sales concept era
Steven Ye wants to start a company. He has a rough draft of his business plan and some tentative funding but needs some additional advice and guidance to help him through the start-up process. The best source for Steve is a. an angel investor b. a SCORE volunteer c. his parents d. a bank loan officer
b. a SCORE volunteer
Terrell urgently needs to take care of some personal business using the Internet, but he is afraid that he might jeopardize his job if he is found using the company network for personal use. Which corporate practice is causing Terrell to most likely feel this concern? a. intellectual property monitoring b. electronic monitoring c. technology auditing d. whistle-blowing e. job tracking
b. electronic monitoring
A disadvantage of limited liability company is that it _________. a. requires earnings to be taxed at the corporation rate b. must dissolve when an owner leaves the company c. requires the division of profits in a fixed proportion d. has more restriction ownership rules than S corporations e. is required to hold annual meetings
b. must dissolve when an owner leaves the company
The nation of North Xi has a ___________ currency that cannot be exchange in a foreign exchange market. a. countertrade b. nonconvertible c. flexible d. fixed e. freely floating
b. nonconvertible
Andre had a difficult time finding a job after college. Eventually he found work selling office equipment, which did not interest him much. Andre's sales are low and so is his motivation to do more for the company for which he works. According to the Q12, Andre is classified as ___________. a. engaged b. not engaged c. actively disengaged d. highly engaged e. unengaging
b. not engaged
If a film decides to shift the production of goods or services to an overseas company, this firm is a. diversifying b. offshoring c. telecommuting d. forming a partnership
b. offshoring
Greg is 57 years old and is looking for a new job even though he knows many companies prefer not to hire older workers. Which of the following is likely a disadvantage of hiring Greg? a. higher absenteeism b. lower training costs c. expectation of a fairly high salary d. unwillingness to learn new skills e. higher turnover rate
c. expectation of a fairly high salary
An online dating service that charges members makes money primarily through using a(n) ________. a. intermediary model b. community-based model c. fee-based d. niche model e. advertising-based model
c. fee-based
The key to coming up with a great business idea is to: a. develop an innovative product or service. b. offer a product that is similar to others. c. fill an unmet need. d. provide a product or service that no one else offers.
c. fill an unmet need.
Internet entrepreneurs
create businesses that operate solely online
Which of the following is a typical characteristic of a business-to-business market? a. an individual makes the purchasing decision b. geographically dispersed buyers c. weak customer relationships d. complex buying decisions e. many customers who purchase in small quantities
d. complex buying decisions
If Walmart, a giant retailer, merges with Wells Fargo, a large bank, in order to offer low-cost financial services to Walmart's customers, this would be an example of a(n) __________. a. vertical merger b. acquisition c. product extension merger d. conglomeration e. horizontal merger
d. conglomeration
To avoid debt, a new business owner should have enough projected revenue to cover expenses for the first a. six months b. year c. two years d. five years
b. year
Safety, belonging, and self-actualization are all components of __________. a. Expectancy theory b. Maslow's hierarchy of needs c. Three needs theory d. equity theory e. Theory X
b. Maslow's hierarchy of needs
Fed serves as a
bank to other banks "last resort"
Contextual advertising
bases the online message on the content of page
Example of technology changes
better coffeemaker/software program, instead of hammer and nail using a nailgun
Gross Domestic Product (GDP)
broadest measure of the health of any country's economy, includes goods that are being produced in that country
productivity is an indicator of a....
business's health
Entreprenual talent is...
essential to the success of businesses
Nurture good customer relationships
establish long-term trusting relationships with individual customers
wholly-owned subsidiary
establishes a foreign facility owned entirely by the investing firm
Fair Labor Standards Act
establishes minimum wage and how to pay overtime and governs the use of child labor
What factor influences the amount of a surplus or deficit?
exchange rates
value
equals the ratio of the product's benefits to its costs
Challenge the process
not always accepting conventional beliefs and practices as the only way to accomplish tasks
span of control
number of employees being supervised by a specific person
Group flow
occurs when a group knows how to work together so that each individual member can achieve flow
turnkey projects
occurs when firms export their technological know-how in exchange for a fee, usually for sophisticated and complex manufacturing; once the facility is up and running the locals are trained, then the keys are turned over to foreign owners
double taxation
occurs when the corporation is first taxed on its net income/profit then distributes that net income to its shareholders in the form of dividends that the individual shareholder must then pay taxes on
Life experiences offer all of us...
opportunities to develop our personal ethics
Preliminary paperwork of a limited-liability company (LLC)
organizational paperwork must be filed with state and federal agencies
Business incubators
organizations that support start-up businesses by offering resources such as administrative services, technical support, business networking, and sources of financing
Adware
software that automatically displays or downloads advertising material (often unwanted) when a user is online.
Which method of entering foreign markets has the advantage for test-marketing a product in a foreign market at the lowest cost? a. joint ventures b. wholly owned subsidiaries c. exporting d. contract manufacturing
d. contract manufacturing
_______ refers to how much of a product or service people want to buy at any given time. a. surplus b. commodity c. supply d. demand e. equilibrium
d. demand
Tactical planning and coordinating specific plans with the established strategic vision is the task of the _____________. a. first-line managers b. junior managers c. top managers d. middle managers e. CEO
d. middle managers
The many product lines at Procter & Gamble are an example of product ________. a. line width b. line length c. mix length d. mix width e. mix line
d. mix width
If a Turkish company closes its U.S. offices on Easter Sunday, the company is giving PRIMARY consideration to ________. a. language b. attitudes c. aesthetics d. religion e. ethnocentrism
d. religion
example of behaviors
"I have mostly shallow relationships because I tend not to follow through my commitments" or "I have many deep, long-lasting friendships because I value friendship and work to take care of my friends"
Example of low motivation
"Nothing I do is going to impact the situation", "Even if it does go well, I'll get a reward if this works out", "The only reward from this is incredibly small"
Example of create a new vision
"This isn't your father's Olds mobile" campaign
Disengaged employees cost the economy up to ________ billion a year
$300
World Trade Organization (WTO)
-152 member countries -Attributes global trade disputes -Has power to enforce decisions -Took GATT rules and extended rules to services and increased protection
Marketing Era
-Develop products that meet customer needs -Commit total organization to delivering superior products and customer service -Focus on products with highest profit
The European Union
-established in 1957 -28 member countries -largest free trade area -1/3 of the world's largest production -Largest exporters/second largest importer
Examples of promotional mix
1. Advertising 2. Public relations 3. Sales promotion 4. Personal selling
A workforce profile has information such as
1. Age 2. Education 3. Training 4. Experience 5. Specialized skills 6. Current position 7. Previous positions
Organizing
1. Allocating resources 2. Creating an organizational structure 3. Recruiting and placing employees
Following up
1. Answer questions, provide training/solutions
Idea Screening
1. Ask yourself: Will my target market benefit from this product? 2. Ask yourself: Can this product be competitive with similar products
Three Dominant Generations in the workplace today
1. Baby boomers 2. Gen-Xers 3. Millennials
Stephen Corey's Seven Habits of Highly Effective People
1. Be proactive 2. Begin with the end in mind 3. Put first things first 4. Think win-win- be positive 5. Seek first to understand, then to be understood-Listen then talk 6. Synergize- Brainstorm with other people 7. Sharpen the saw- update your skills and recharge your batteries
Examples of behavioral segmentation
1. Benefit sought 2. Volume usage 3. Brand loyalty 4. Price sensitivity 5. Product end use 6. Buying only one brand of toothpaste regardless of the price 7. Buying cranberry sauce only at Thanksgiving
Example of family brand
1. Bic makes pens, razors, and lighters 2. Kellog's 3. SonyTh
Example of outdoor media
1. Billboards 2. Signs in sports arenas 3. Ads painted on vehicles and skyscrapers
Services provided by merchant wholesalers
1. Bulk breaking 2. Financing 3. Management service and advice 4. Market information 5. Risk bearing 6. Selling and promoting 7. Transportation 8. Warehousing
Advantages of sales promotion
1. Can stimulate quick increases in sales by targeting promotional incentives on particular products 2. Good short-term tactical tool
Components of a partnership agreement
1. Capital contributions 2. Responsibilities of each partner 3. Decision-making process 4. Shares of profits and losses 5. Departure of partners 6. Addition of partners
Types of limited-service wholesalers
1. Cash-and-carry wholesalers 2. Truck wholesalers (Truck jobbers) 3. Drop shippers 4. Rack jobbers
Traits of Leadership
1. Challenge the process 2. Inspire a shared vision 3. Model the way 4. Exhibit emotional intelligence 5. Enable others to act
Factors of determinants of demand
1. Changes in income levels 2. Population changes 3. Consumer preferences 4. Complementary goods 5. Substitute goods
Place
1. Choose the right distribution channel 2. Select distributors and wholesalers
Examples of firms who have created opportunities and new types of product and services
1. Clean fuel 2. Medical vaccines 3. Fighting censorship 4. Going green
Characteristics of autocratic leadership
1. Commands "Do it because I say so" 2. Threatens 3. Has tight control 4. Monitors studiously 5. Creates dissonance 6. Contaminates everyone's mood 7. Drives away talent
How can a company maintain their ethical focus?
1. Communicate regularly about acceptable and unacceptable business practices 2. Develop a strict code of ethics and check to make sure the code is being followed 3. Create a hotline for employees to anonymously report violations of the ethics code and make sure the allegations are followed up on 4. Show how serious the company is about ethics and employee ongoing training
Pros to CSR
1. Company develops a positive reputation in the marketplace (consumers and suppliers) 2. Company enjoys strong recruitment and retention of talent 3. Efficiency increases when companies use materials efficiently and minimize waste 4. Sales increase through new product innovations and environmentally and ethically conscious labeling
Business to Business (B2B) Online
1. Company websites 2. Procurement exchange 3. Specialized industry portals 4. Brokering sites 5. Information sites
Purpose of packaging
1. Contains/protects the product 2. Facilitates use/convenience 3. Promotes the product 4. Affects the environment
Consumer Product Classifications
1. Convenience goods and services 2. Shopping goods and services 3. Specialty goods and services 4. Unsought goods and services
E-commerce of CIO
1. Create and maintain an Internet storefront 2. Drive traffic to corporate web site 3. Maintain secure interactions
Policies of CIO
1. Create policies regarding security, privacy, and intellectual property
Systems Design and Development of CIO
1. Create specifications for required programs 2. Create, test, and maintain custom software programs
Impact of Technology on Small Businesses
1. Creates entirely new business opportunities 2. Low-costs of marketing 3. Creates opportunity to pretest product ideas and advertising upcoming promotions 4. Business owners must monitor and update social networking pages
The Four C's
1. Customer wants and needs 2. Cost to satisfy 3. Convenience to buy 4. Communication
Market Research Steps
1. Define the need, problem, or objective 2. Collect relevant data 3. Analyze data 4. Interpret results 5. Act on conclusions
What are the 4 types of leadership?
1. Democratic 2. Autocratic 3. Affiliative 4. Visionary
Product Analysis
1. Determine a desired sale price 2. Assess the cost of production
Hiring process
1. Determine initial pool of candidates from applicant files 2. Conduct initial and follow-up interviews 3. Test for specific job skills 4. Conduct background and reference checks 5. Make final selection 6. Hire and monitor through probationary or trial period
The Marketing Concept
1. Develop products that meet customer needs 2. Commit total organization to delivering superior products and customer service 3. Focus on products with highest profit
What are the challenges of multinational businesses?
1. Differences in international laws 2. Cultural differences (time, schedule) 3. Economic differences (taxes, interest)
Cons to CSR
1. Difficult to measure how CSR interacts with a long-term responsibility to the community or planet 2. Difficult to balance profits for shareholders and quality for consumers 3. Difficult to balance the demands of social responsibility with successful business practices 4. Difficult to conduct a profitable business while being environmental friendly
Aspects of performance management
1. Direction sharing 2. Rule clarifying 3. Goal setting 4. Ongoing performance monitoring and feedback 5. Coaching and support 6. Performance assessment 7. Rewards, recognition, and compensation 8. Work flow, process control, and return on investment
Problems with performance appraisals
1. Discomfort with negative feedback 2. Difficulty quantifying performance 3. Lack of follow-up
Advantages of a sole proprietorship
1. Easy to set up 2. Greater control and flexibility 3. No separate tax return 4. Business losses can offset personal income
Example of raw and processed materials
1. Eggs 2. Butter 3. Wood 4. Steel
What are the effects of CSR on Society?
1. Environmentally, has local and global effects 2. Economically, if a company behaves irresponsibly it can have negative effects on consumers and stakeholders 3. Employees' morale, person's personality and values can affect a company's advancement, work environment, and sense of purpose and value
What are the contributions of small businesses?
1. Foster innovation 2. Help bigger companies 3. Help consumers
Advantages to publicity
1. Free 2. Believable, since it is presented like a news story
In the United States, small businesses...
1. Generates 64% of net new jobs 2. Create nearly 1/2 of the U.S GDP 3. Export 1/3 of all U.S exports of goods and services 4. Represents the second largest economy in the world
What are 10 ways to get promoted?
1. Get a mentor 2. Learn outside of work 3. Self-promote your successes 4. Volunteers 5. Ask questions 6. Be consistent 7. Help your colleagues 8. Tell your boss you want to be promoted 9. Be a team player 10. Create your opportunities
Due diligence checklist
1. Get an independent valuation of inventory and equipment 2. Have an accountant review the financial statements for the past three years 3. Have a lawyer analyze pertinent business documents, property leases, employment contracts 4. Talk to suppliers to see if they will continue to supply the business when ownership changes hands 5. Check for lingering or festering hazardous waste problems
What are the 3 economic indicators watched by business people?
1. Gross domestic product 2. Consumer and producer price indices 3. The unemployment rate
What are some global business trends?
1. Growing role for developing nations, U.S isn't dominant in exports 2. A rise in non-U.S foreign direct investment (FDI) 3. A rise in non-U.S multinational enterprises 4. Increasing democratization, free-market economies are involved in the global economy
International Economic Challenges
1. Growth development, more people than an advanced economy (have no transportation, communication systems, technology, or utilities) 2. Government policies and the economic environment, international businesses prefer free market economies (government interventions drives costs up) 3. Socioeconomic factors, includes demographic factors, birth rates, and culture
Leading
1. Guiding and motivating 2. Achieving results and milestones 3. Maintaining unit/ organization's focus on the goal or vision
Example of convenience goods and services
1. Gum 2. Soap 3. Tobacco 4. Newspapers 5. Ketchup 6. Milk 7. Car wash
cons to a vertical organization
1. Have to communicate up the chain 2. Makes it difficult for the company to respond quickly to changes in a market
Benefits of International Trade
1. Higher standard of living due to greater quantity and variety of higher-quality products
Advantages of personal selling
1. Highly interactive communication between the buyer and the seller 2. Excellent for communicating a complex product, information, and features 3. Good for building customer relationships and closing a sale
B2B purchasing process
1. Highly trained buyers 2. Group purchasing decision 3. Complex buying decisions 4. Close and personal selling relationship between marketer and buyer 5. Personal selling
What are two major factors that determine an international firm's strategy?
1. How important it is for a business to keep its costs down and prices low? 2. How necessary is it for a company to customize or differentiate its product to adapt to different customer tastes and preferences around the glob?
The Corporate Social Responsibility (CSR) policies cover what areas?
1. Human rights and employment standards in the workplace (affects local and global) 2. Ethical sourcing and procurement (source of raw materials) 3. Marketing and consumer issues (ads may be manipulative) 4. Environmental, health, and safety concerns (decisions that affect environment) 5. Community and "good neighbor" policies (companies affect communities)
New Product Development Steps
1. Idea Generation 2. Idea Screening 3. Product Analysis 4. Development and Testing 5. Product and Marketing Mix Development 6. Marketing Testing 7. Commercialization
The Marketing Process
1. Identify a Market Need 2. Conduct Market Research & Develop a Marketing Plan 3. Identify Target Customers (Segment) 4. Implement the Marketing Mix 5. Nurture Good Customer Relationships
Stages of decision making
1. Identify the problem 2. Generate alternative solutions 3. Evaluate the alternative solutions based on criteria 4. Choose the best plan of action 5. Evaluate the decision to ensure its carried out correctly and meets the goals of the organization
Disadvantages of sales promotion
1. If used over the long term, customers may get used to the effect 2. Too much promotion may damage the brand image
Benefits of employee training
1. Increased job satisfaction, motivation, and morale among employees 2. Greater efficiency in work, resulting in financial gain 3. More effective use of new technologies and methods 4. Development of new strategies and products 5. Lower employee turnover 6. Fewer interpersonal conflicts and better communication
Disadvantages of buying an existing business
1. Initial purchase price may be high, difficult to determine true value of previous owner's goodwill 2. Stuck with previous owner's mistakes, might inherit dissatisfied customers, bad debt, and unhappy distributors/purchasing agents 3. No guarantee that existing employees/suppliers, if staff stays you may inherit unanticipated problems
Secondary Sources of Data
1. Internal corporate information 2. Trade associations 3. Commercial sources 4. Government data 5. Magazines and newspapers 6. Social media, internet databases, and search engines
Commercialization
1. Introduce the product to the market 2. Begin the rollout process
Steps of a product life cycle
1. Introductory Stage 2. Growth Stage 3. Maturity Stage 4. Decline Stage
operational plan...
1. Involves planning the execution of the tactical plan 2. Depends on daily or weekly schedules 3. Focuses on specific department or employees
Advantage of franchising
1. It is a proven system of operation, have standard products and systems 2. There is a strength in numbers, institutions lend materials to franchises since they're stable 3. Initial training is part of the deal 4. Marketing support is provided, have the benefit of national advertising programs 5. Market research is often provided, can identify the competition and offer strategies
SAS, a billion dollar software company fosters a creative environment by...
1. Keeping employees intellectually engaged 2. Removing distractions so employees can do their best work 3. Making managers responsible for sparking creativity 4. Managers eliminate the arbitrary distinctions between administrative "suits" and more abstract "creatives" 5. Engages customers as creative partners 6. Provides perks such as day care, medical facilities, and a family cafeteria
What are some benefits of a well-defined vision and mission statement?
1. Keeping management on track by ensuring strategies are consistent with the organization's goals 2. Inspiring employees 3. Giving investors insight into the values of the organization
contingency plan...
1. Keeps an organization running in the event of a disruption 2. Details internal and external communication procedures for such an event 3. Determines which departments are most vital to an organization during a crisis
Disadvantages of franchising
1. Lack of control, no way to be creative 2. Start-up costs, large start-up fee and monthly royalty fee 3. Workload, no easy hours 4. Competition 5. Share common problems
B2C nature of the buying unit
1. Less sophisticated and more emotional purchase decision
Example of manufacturer's brand
1. Levi's Jeans 2. Dell computers 3. Ford 4. IBM 5. McDonald's 6. Bank of America 7. Ben and Jerry's 8. Google
Example of unsought goods and services
1. Life insurance 2. Cemetery plots 3. Pharmaceutical drugs 4. Emergency medical services 5. Automobile repairs
Examples of psychographic segmentation
1. Lifestyle 2. Personality traits 3. Motives 4. Values 5. Whole Foods and Trader Joe's focus on consumers interested in healthier, organic foods
Disadvantages of internal recruiting
1. Limited pool of candidates 2. Creates cascading internal vacancies 3. May increase resistance to change
Characteristics of democratic leadership
1. Listens well 2. Is a team worker 3. Collaborates 4. Influences
Benefits of theory z
1. Low turnover 2. High productivity 3. Strong workforce morale
Methods to extend the product life cycle
1. Lower the price 2. Create a new use 3. Find a new market 4. Use new labels or different container types 5. Create a new vision
Steps businesses take to make sure employees get off to an ethical environment:
1. Managers can design a strict code of ethics that defines acceptable and unacceptable behavior 2. Managers can make a mission statement that is in place and communicated throughout the business 3. The company can offer orientation programs to new employees to inform them of the ethical standards in place and the conduct expected of them
B2C market structure
1. Many customers 2. Small-volume purchases 3. Geographically dispersed
Cons to Marketing
1. Misuse of personal information 2. Hidden fees 3. Consequences of purchase
Disadvantages of a partnership
1. Must share control and profits 2. Need the right partner 3. Differences in opinion on company's direction 4. Unlimited liability
Arguments in Favor of Protectionist Trade Barriers
1. National Security Argument 2. Infant Industry Argument 3. Cheap Foreign Labor Argument 4. Threat of Retaliation (Bargaining Chip) Argument
Characteristics of Theory Y
1. Naturally motivated 2. will create their own motivation 3. creative problem solvers 4. seek added responsibility 5. need intellectual stimulation
McClelland's Three Needs Theory
1. Need for achievement- to accomplish something difficult on your own 2. Need for affiliation- to form close personal relationships 3. Need for power- to be able to control the behavior of others
Consumer Buying Process
1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase or no purchase decision 5. Post-purchase evaluation
Organizational structure depends on a variety of factors such as
1. Number of employees in an organization 2. Speed at which decisions need to be made 3. Subjectivity of the business to rapid change 4. Collaborative nature of work
Primary Sources of Data
1. Observations 2. Questionnaires and surveys 3. Experiments 4. Interviews and focus groups 5. Customer feedback
Disadvantages of social media
1. Often difficult to maintain and manage all conversations 2. Negative news travels fast
Reasons to start a small business
1. Opportunity knocks 2. Financial independence 3. Control 4. Flexibility 5. Unemployment
What are the four stages of the business cycle?
1. Peak 2. Recession 3. Trough 4. Expansion/recovery
Market Testing
1. Place product in select target market 2. Virtual reality or simulated tools can help customers
Strategies used to impact price perceptions include
1. Prestige pricing (premium pricing) 2. Psychological pricing (odd/fractional pricing) 3. Reference pricing
Example of maintenance, repair, and operating (MRO) products
1. Printing paper 2. Pens 3. Cleaning materials 4. Tools 5. Lubricants for machines
Development and Testing
1. Produce a virtual or conceptual prototype 2. Get feedback from potential customers
Product and Marketing Mix Development
1. Produce physical prototype 2. Obtain more feedback from potential customers
The Evolution of Marketing
1. Production Era - 1900 2. Selling Era -1930 3. Marketing Era -1950 4. Societal Marketing Era -1970 5. Customer Relationship - 1990
Characteristics of affiliative (laissez-faire) leadership
1. Promotes harmony 2. Emphasizes with others 3. Boosts morale 4. Solves conflict
The Personal Selling Process
1. Prospecting 2. Approaching the prospect 3. Presenting 4. Overcoming objections 5. Closing the sale 6. Following up
when choosing a legal structure for their businesses, most entrepreneurs want to achieve two goals
1. Protect themselves from personal liability 2. Have the income of their businesses flow through to their individual tax returns so they don't face double taxation
Overcoming objections
1. Provide additional information to answer questions or resolve doubts
Motivator Factors
1. Recognition 2. Responsibility 3. Promotion 4. Job growth
Advantages of buying existing business
1. Reduction in start-up time and energy if business is operational 2. Has existing satisfied customer base 3. If business has positive track record may be easier to finance
Examples of geographic segmentation
1. Region 2. Suburban 3. Rural 4. City 5. Country 6. Population density 7. Climate 8. Terrain 9. Food preferences 10. Air conditioning 11. Heating needs 12. Apparel 13. Skis 14. Snow blowers 15. Four-wheel-drive vehicles
Fed uses 3 tools to affect money supply
1. Reserve requirements 2. Short-term interest rates 3. Open market operations
Disadvantages of public relation
1. Risk of losing control 2. Cannot always control what other people write or say about your product
Hygiene Factors
1. Safe working environment 2. Proper pay and benefits 3. Relationships with co-workers
IT Department Tasks
1. Security 2. Emergency recovery 3. Equipment 4. Networks and databases 5. Software 6. Training 7. Custom software 8. Mobile computing 9. Remote access
Control Cycle
1. Setting performance standards. 2. Measuring performance. 3. Make adjustments 4. Perform corrective action 5. Reevaluate performance standards 6. Repeat
Corporate structure
1. Shareholders 2. Board of Directors 3. Chief Executive Officer 4. Corporate Officer 5. Line Managers 6. Employees
Sources of help that a small business owner can turn to
1. Small Business Administration (SBA) 2. Service Corp of Retired Executives (SCORE) 3. Entrepreneurs Organization (EO) 4. Business incubators 5. Advisory board
Types of Retailers
1. Specialty store 2. Department store 3. Supermarket 4. Convenience store 5. Discount store 6. Factory outlet 7. Warehouse club
Different types of trade barriers:
1. Tariffs 2. Subsidies 3. Quota 4. Embargo 5. Local content requirement
What are the determinant of supply?
1. Technology changes 2. Changes in resource prices 3. Price expectations 4. The number of suppliers 5. The price of substitute goods
Examples of training methods?
1. Teletraining 2. Video conferencing 3. Electronic Performance Support Systems (EPSS)
Presenting
1. Tell the product's story 2. Conduct demonstrations
In order to be an S corporation...
1. The company must not have more than 100 shareholders 2. Shareholders must be U.S citizens/ residents 3. The company must issue only one class of stock 4. The company must distribute proportionately all profits and losses to each shareholder based on each one's interest in business
Costs of International Trade
1. Threats businesses with international competition 2. Domestic businesses may lose market share to foreign companies causing them to shut down
A network organization is suitable for companies that need
1. To be flexible and innovative as possible 2. To respond quickly to threats and opportunities 3. To save time 4. To reduce costs and risk
Economists Argument Against Protectionism Trade Barriers
1. Trade barriers benefit domestic producers and their workers but hurt domestic customers 2. It is more effective to educate displaced individuals so they may move into a line of business with comparative advantage and rising demand
Trade Sales Promotions
1. Trade shows and conventions 2. Sales contests 3. Catalogs 4. In-store demonstrations 5. Quantity discounts 6. Training and support programs
Can you affect how businesses operate ethically?
1. Your own ethical behavior 2. Who you do business with 3. Who you invest in 4. Who you work for
Advantages of teamwork
1. agreement on the objectives and the best approach to solve the problem 2. depend on one another's ideas and efforts to complete tasks successfully 3. sense of accountability and members are committed to one another's success
businesses use what baselines to create their own values?
1. base character 2. beliefs 3. belief origins 4. behavior
Advantages of franchising
1. costs and risks of opening the foreign market fall on the franchise
Characteristics of a group flow
1. creative spatial arrangements 2. playground design 3. constant focus-on the target group for the product 4. heavy use of visualization and prototyping-are then refined to make models more efficent
Tactical plans...
1. determines resources and actions necessary to implement strategic plan 2. made with a one to three-year horizon in mind
Advantages of S corporations
1. do not pay corporate income taxes, shareholders pay income taxes based on their share of business profits and pay taxes through individual tax return 2. profits and losses pass through to the shareholders and there's limitation on personal liability
Challenges to teamwork
1. does not always bring more creative output 2. groupthink 3. different generations in the workforce may have different styles and expectations
Advantages of joint venture
1. high potential for learning 2. benefits of combined resources
Disadvantages of exporting
1. high transportation costs 2. threat of trade barriers, such as tariffs 3. lack of access to local information
Disadvantages of contract manufacturing
1. lack of quality control over distant subcontractor
Disadvantages of licensing
1. licensee may become competitor 2. loss of knowledge to potential competitor
Disadvantages of turnkey project
1. loss of technical know-how to potential competitors
Disadvantages of Mergers
1. more than 1/2 of all mergers don't meet expectations 2. poor integration, focus on cost cutting and not everyday operations 3. conflict corporate cultures 4. power struggles in management team 5. employee turnover
Characteristics of theory x
1. not motivated 2. must use heavy control of workers 3. follow rather than solve 4. avoid responsibility 5. security seeking
Some systems of ethical conduct are based on...
1. religious systems 2. cultural/national 3. some that have been passed down from generation to generation
Disadvantages of a corporation
1. reporting requirements 2. double taxation
Disadvantages of strategic alliance
1. risk of losing specialized technology to partner 2. difficulty in finding compatible partner
Disadvantages of joint venture
1. shared control of business 2. risk of losing specialized technology to partner
How can managers form the best teams?
1. size- not too large but not too small 2. time- depends on how fast tasks need to be done 3. status- may be required to have progress reports and updates
Advantages of licensing
1. speed of entry
Advantages of contract manufacturing
1. speed of entry 2. low test-marketing costs
Small businesses hire...
1. young people 2. old people 3. part-time workers
Asia-Pacific Economic Cooperation (APEC)
21 member countries including the U.S, Japan, and China
_______ of U.S. employees are not engaged or are actively disengaged in their work
73%
Franchise
A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area
Damage control
A company's effort to minimize the harmful effects of a negative event
401k plan
A defined contribution plan in which pre-tax dollars are invested and generally managed by an outside investment company
scatter plot
A graph that displays a possible relationship between two sets of data.
histogram
A graph that displays the number of times a specific event occurs
run chart
A graph that displays the value of some data across a specific set of dates
Economic costs of protectionism
A lower quantity and variety of lower-quality products at higher prices
limited liability partnership (LLP)
A partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.
Order taker
A salesperson who handles repeat sales and builds positive customer relationships
After conducting a SWOT analysis managers should establish what?
A set of goals and objectives based on the information
check sheet
A simple sheet recording the number of times certain product defects occur
Example of matrix organization
An engineer might report to an engineering supervisor as well as a project manager
What kind of business is also known as the gazelle business?
Businesses that are owned by growth entrepreneurs
What forms of business ownership may issue shares of stock?
C-corp, S-corp
What forms of business ownership must have board of directors, corporate officers, annual meetings, and annual reporting?
C-corp, S-corp, LLC
Bonuses
Cash awards given to employees who achieve specific performance objectives
Penetration pricing
Charging the lowest possible price for a new product
Example of conglomeration
Citicorp (banking service) and Travelers Group Inc (insurance company) merged to form the largest financial services called Citigroup Inc.
Example of a product mix
Coca-Cola has many product lines, including soft drinks, energy drinks, and sports drinks
Marketing mix
Combination of four P's of marketing
Example of niche market
Company that sells specialized gear shifters for racing bicycles
Comparative advertising
Compares a brand's characteristics with those of other established brands
Variable costs
Costs that vary with the production level
Benefits to affiliative leadership style
Creates harmony by connecting people to one another
Form utility
Creating a finished product
Plant
Creative and imaginative
Discounts
Deduction from the regular price charged
Example of contract manufacturing
Dell and Apple computers designed in the U.S., manufactured in Asia
Example of crowdsourcing
Dell uses crowdsourcing to develop ideas for new products
B2B advertising
Directed to other businesses rather than to consumers
Drop shippers
Don't carry inventory/handle the product, select a manufacturer who ships merchandise directly to customer
Example of social intrapreneurs
Ebay made their company more environmentally friendly by installing solar panels at their head quarters
Example of a company violating ethics and the law
Enron, was a popular company that hid its debts and were charged for fraud, key people involved were convicted, due to this the Sarbanes/Oxley Act passed with strict corporate finance requirements and penalties
Example of legal compliance
Equal Employment Opportunity Commission and the Securities and Exchange Commission provide guidance to companies to help them maintain legal compliance
Enterprise social networking is the application of social network tools to educate True or False
False
Groupthink is the convergence of the group on the best idea True or False
False
Identity theft is mainly a problem for senior citizens True or False
False
In a planned economy, an individual's personal income dictates his or her spending choices. True or False
False
Increasing U.S dominance of foreign direct investments has helped accelerate globalization True or False
False
Liabilities do not include losses associated with breaches of contract or from damages True or False
False
Loss leader pricing is used to move a product quickly off the shelves. True or False
False
Microeconomics is the study of the behavior of the overall economy. True or False
False
The government can influence the economy through its fiscal policy by making changes in the money supply. True or False
False
Internal recruitment
Filling job vacancies with present employees, rather than looking outside the business.
Example of leveraged buy outs
Hertz Corporation, Toys R Us
_________ make up the largest share of minorities owning a small business.
Hispanics
Example of price discrimination
Hotels and resorts rates are different on different days
Example of corporate advertising
Humane Society
When autocratic leadership is appropriate
In a crisis to kick-start an urgent turnaround; with problem employees; traditional military
Promotion Definition
Involves all of the techniques marketers use to inform targeted customers of the benefits of a product and to persuade them to purchase the good, service, or idea
In many nations, governments focus on improving the
Nation's resources, labor, capital, technology, innovation, and entrepreneurialism
Pricing strategy of monopolies
No competition
Liability of a corporation
Owners (shareholders) are not personally liable for debts of corporation
Producer -> Wholesaler -> Retailer -> Consumer distribution channel
P&G
Example of extrinsic motivators
Pay, promotion, and verbal praise
Serial entrepreneurs
People who open multiple businesses throughout their career
Ongoing performance monitoring and feedback
Periodic performance reports about an employees progress toward meeting his or her goals as well as feedback about how better to achieve them
What can assess someone's leadership skills?
Personality tests
Creative spatial arrangements
Pinning ideas on the walls and using large charts to combine ideas from the entire group, tends to lead to open consideration of ideas
Prestige pricing (premium pricing)
Practice of charging a high price to invoke perceptions of high quality and privilege
Price-takers
Price may be determined in the market through the interaction of demand and supply
Target costing
Prices are determined by the market conditions
Positioning
Process of developing a unique marketing mix to best satisfy its targeted customers
Loss leader
Product that is priced below its costs
Shopping goods and services
Products that are purchased less frequently and require more effort and time for comparison
Uncontrolled messages
Publicity
Economic costs of free trade
Reduced sales and lower prices for domestic firms that find it difficult to compete internationally, which reduces their profitability and lowers job security for their workers
Well-designed goals are
SMARTER
Period of existence of a corporation
Separate entity; existence not dependent on owners, founds; ownership transferred easily
Rack jobbers
Serve grocery stores and drug retailers, delivery people set up rack/displays within stores and bill retailer for the goods sold
Management of a corporation
Shareholders elect board of directors, which provides strategic management of corporation; board appoints senior management
Management of an S corporation
Shareholders elect board of directors, which provides strategic management of corporation; board appoints senior management
Sales promotions
Short-term activities that target consumers and other businesses to generate interest in a product
Subcultures
Specific groups within a culture that share attitudes and life experiences
proxy fight
The acquiring company tries to persuade the target company shareholders to vote out existing management and to introduce management that is sympathetic to the goals of the acquiring company.
Outsourcing
The assignment of certain tasks such as production or accounting to an outside company or organization
Product placement
The placement of products in TV shows, movies, and video games
Psychological pricing (odd/fractional pricing)
The practice of charging a price just below a whole number to give the appearance of a significantly lower price ($9.99 v.s $10)
Number of suppliers
The supply of a good or service increases as the number of competitors increases
Convenience goods and services
Those that the customer purchases frequently, immediately, and effortlessly
A diversified workforce adds creativity and a variety of viewpoints to the workforce, which often helps improve a company's competitiveness and its bottom line. True or False
True
A free-floating exchange rate system uses global supply and demand to set exchange rates True or False
True
Conceptual skills means a person has the ability to think abstractly True or False
True
Contingency planning helps a business weather a disruption or a crisis True or False
True
Crowdsourced funding is the use of social networking to acquire capital for a new venture. True or False
True
Employees can benefit from successful marketing because new job opportunities may be created as production expands to satisfy the growing demand for highly-valued products. True or False
True
MRO B2B products are marketed much like consumer convenience goods and services. True or False
True
Macroeconomics is the study of how certain occurrences affect the economy as a whole. True or False
True
Outsourcing sometimes involves moving the production of a product from a domestic location to a foreign location True or False
True
Small businesses help large businesses by providing the parts and services required in larger manufacturing processes True or False
True
Sociocultural influences that affect buying decisions include a buyer's culture, social class, family, and peers. True or False
True
Some companies use an alternative to performance appraisals called performance management. True or False
True
Strength-based management believes the best way to develop talent is to help employees add skills and knowledge that build on their existing strengths True or False
True
The main difference between the B2B and B2C markets is that B2B markets have fewer buyers that purchase many more individual quantities. True or False
True
The supply chain is the process by which products, information, and money move between a supplier and the consumer True or False
True
When a business is profitable, the whole society benefits. True or False
True
Example of laws going into buisnesses
USDA created stringent guidelines about what can be labeled as organic
Interactive advertising
Uses interactive media to connect directly with consumers in a personal and engaging way
Viral marketing
Using social networks, e-mail, and websites to spread the awareness of a particular brand
Introductory stage example
Vinyl records were introduced in 1930
Example of S in SWOT
Walmart has a powerful brand, reputation for value and convenience, wide range of products in one store
Example of T in SWOT
Walmart has intense price competition increasing, global retail exposes Walmart to political problems in the countries where it operates, being number 1 makes Walmart the target of competition
Example of W in SWOT
Walmart is not as flexible as competitors who sell just one type of product, global but still in only a few countries
cooperative
a business that is owned and governed by members who use its products or services, any profits made are returned to members in proportion to their use
Recession
a decline in GDP for two or more successive quarters a year
Example of changes in resource price
a decrease in the cost of lumber increases the number of homes built
disinflation
a decrease in the rate of inflation
Logo
a graphic representation or symbol of a company name, trademark, or abbreviation
Economic benefits of free trade
a greater quantity and variety of higher-quality products at lower prices
bargaining unit
a group of employees with similar interests and concerns that negotiate with the employer for better working conditions or pay
Advisory board
a group of individuals who offer guidance to the new business owner
Entrepreneurial teams
a group of individuals with varied experiences and skills that come together to form a new venture
Autocratic
a leader who takes complete charge
Brand
a name, term, symbol, design, or combination there of that identifies a seller's products and differentiates them from competitors' products
workforce pile
a personal "inventory" that includes information about each employee
S corporation
a regular corporation that has elected to be taxed under a special section of the Internal Revenue Service Code called Subchapter S
Local Content Requirement (LCR)
a requirement that some portion of a good be produced domestically
Profit sharing plan
a retirement plan for businesses in which the employer alone makes contributions
inflation
a rise in the general level of prices over time
Independent contractors and consultants
a self-employed contingent worker
Distribution channel
a series of firms or individuals that participate in the flow of a product from manufacturer to consumer
contingency plan
a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption
corporation
a specific form of business organization that is legally formed under state laws
Target market
a specific group of potential customers on which a firm focuses its marketing efforts
six sigma
a statistically based, proactive, long-term process designed to examine the overall business process and prevent problems
Embargo
a total restriction on an import/export
partnership
a type of business entity in which two/more owners (or partners) share the ownership and the profits and losses of the business
One of the first things someone needs to do before starting a business is to write which of the following? a. A business plan b. A loan application c. A partnership statement d. A franchise agreement
a. A business plan
Warren Buffet runs Berkshire Hathaway which owns companies such as GEICO insurance, Dairy Queen, Fruit of the Loom, and Heizberg Diamonds. Berkshire Hathaway is considered to be which of the following? a. A conglomeration b. An acquisition c. A merger d. A cooperative
a. A conglomeration
You have been tasked with creating procedures that will ensure your business can operate in a weather-related emergency. What have you been asked to create? a. A contingency plan b. A SWOT analysis c. A strategic plan d. A tactical plan e. An operational plan
a. A contingency plan
Which of the following statements about the operation of a corporation is correct? a. A corporation is a separate entity and is legally formed under state laws b. A corporation automatically expires in 99 years and must be renewed if a corporation wants to remain in business c. Owners of a corporation have unlimited liability for any claims against their company d. A corporation tends to be much easier to set up than a sole proprietorship or partnership e. All profits and losses flow through the corporation owner's personal tax returns
a. A corporation is a separate entity and is legally formed under state laws
Dara is an engineer who works on several projects for several different product lines at her company. She reports to the engineering supervisor but, upon being assigned to a project, she simultaneously reports to the project manager as well. For what type of organization does work Dara? a. A matrix organization b. An inverted organization c. A line organization d. A flat organization e. A tall organization
a. A matrix organization
Microsoft and Nokia both provide cell phone software and hardware to consumers. Microsoft wants to use Nokia's hardware to use for its new mobile operating system, while Nokia is looking to better compete in the consumer smartphone market. The companies determine that merging will allow the best of both worlds: Both companies can benefit by merging to start a new company that will offer Microsoft-powered smartphones featuring the latest and greatest technology from Nokia. What type of merger is this? a. A product extension merger b. A vertical merger c. A conglomeration d. A market extension merger e. A horizontal merger
a. A product extension merger
Amit Patel, as part of his compensation package, was offered an opportunity to purchase his company's stock at a later date at its current, lower price. Which of the following was Amit given? a. A stock option b. A stock ownership plan c. A stock purchase plan d. None of the above
a. A stock option
Which of the following is the BEST example of ownership utility? a. A store sells a swimsuit to a costumer b. A law firm believes that it will be more profitable if it owns rather than leases its office space c. A manufacturer purchases raw materials from a supplier to create products d. A collectible item decreases in value over time e. A sporting goods store stocks ski equipment at the beginning of the winter season
a. A store sells a swimsuit to a costumer
Linda runs a business in Dallas that specializes in providing business clothing to veterans free of charge so that they can dress nicely for job interviews. Linda's business is most likely which of the following? a. A not-for-profit organization b. A governmental program c. A for-profit-organization d. A conglomeration e. A cooperative
a. A not-for-profit organization
Benito is an HR manager who is responsible for online recruitment of new employees. Technology has created many challenges for recruiters like him. Which of the following is most likely FALSE? a. Benito can quickly sift through the responses to online postings to find qualified candidates b. Benito should make his company stand out from his competitors when posting job descriptions. c. Benito must stay up to date on how to use social networking techniques and Web 2..0 techniques d. Benito must create online job positions that appeal to the most qualified candidates e. Benito's online posts will yield a large pool of potential candidates
a. Benito can quickly sift through the responses to online postings to find qualified candidates
Which function of management is most concerned with ensuring that employees are performing to operational standards? a. Controlling b. Leading c. Organizing d. Staffing e. Planning
a. Controlling
Jarvis runs a restaurant that has had a lot of complaints from customers lately. Jarvis is a strict manager and prefers to make all the decisions himself. A concerned friend recommends that Jarvis delegate more decision-making responsibility to his employees. Which of the following would be the MOST likely result of Jarvis' delegating responsibility? a. Customer satisfaction will improve because employees can be more responsive to customer needs b. Customer satisfaction will decrease because employees will make the wrong decisions c. Customer will be upset because the restaurant is being run differently d. The restaurant will need to increase its prices e. Employees will quit because of the change in Jarvis' management style
a. Customer satisfaction will improve because employees can be more responsive to customer needs
Which of the following best illustrates the globalization of production? a. Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process. b. Evan Swan, a U.S. based fashion designer, is planning to open a flagship store in China to serve the Asian market. c. Uncle Crab, a UK fast food chain, has been serving customers worldwide through its franchises. d. Silver Unicorn Inc. uses sales personnel from the respective host country to sell its products and services. e. Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers.
a. Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process.
Taka owns a car dealership. He is trying to streamline operations to be more efficient. In the past, salesmen and finance staff performed the same duties. Taka believes it will be more efficient to split the staff into two new areas, a sales area, and a finance area. What is Taka practicing? a. Departmentalization b. Revitalization c. Strategic planning d. Networking e. Compartmentalization
a. Departmentalization
Which of the following strategies is not designed to help a company recover from an ethical lapse? a. Ensuring whistle-blowers face legal consequences b. Working to find a leader who will set an example of the new ethical image of the company c. Restructuring internal operations to empower all employees to consider ethical implications of decisions and allowing them to feel free to speak up when they have ethical concerns d. Redesigning a firm's internal rewards- for example, restructuring the incentive package for sales employees so there's a financial reward for building relationships with clients rather than just closing a sale
a. Ensuring whistle-blowers face legal consequences
A free trade area that includes 27 independent states is the ________. a. European Union b. Association of Southeast Asian Nations c. MERCOSUR d. The Asia-Pacific Economic Cooperation e. NAFTA
a. European Union
Kazuto is interested in starting a new business. Which is a reason Kazuto should consider buying an existing business versus starting one from scratch? a. He will operate a tried and tested business b. He will need to work fewer hours c. He will need less capital up front d. All of the above
a. He will operate a tried and tested business
Which of the following is a good example of microeconomics? a. How a specific company would maximize its production and capacity so it could better compete in its industry b. How an increase in the unemployment rate would affect a country's GDP c. How a decrease in taxation affects consumer spending d. All of the above
a. How a specific company would maximize its production and capacity so it could better compete in its industry
Which of the following is an example of the government's fiscal policy to stimulate an economy? a. Increased government spending b. Increased taxes c. Decreases in the discount rate d. Selling government securities in open markets
a. Increased government spending
The country of Theta restricts the activities of foreign insurance companies in order to give Theta's insurance industry a chance to grow and develop. Theta's actions are an example of the ______ argument in favor of protectionism. a. Infant Industry b. National Security c. Threat of retaliation d. Cheap foreign labor e. Dumping
a. Infant Industry
What results when there is an increase in overall prices? a. Inflation b. Deflation c. Expansion d. Recession
a. Inflation
In what stage in the product life cycle would you consider 3D television to be a. Introduction b. Growth c. Maturity d. Decline
a. Introduction
Which term best describes the area of management that is focused on influencing, motivating, and helping employees to contribute to an organization's success and effectiveness? a. Leading b. Planning c. Controlling d. Managing e. Motivating
a. Leading
MIS differs from IT because a. MIS focuses on applying IT to solve business problems b. MIS is the branch of IT focused on Internet usage c. IT focuses on hardware, and MIS focuses on software d. MIS is applied, and IT is theoretical
a. MIS focuses on applying IT to solve business problems
Which of the following is most likely to be the best suited product for a global market? a. Microprocessors b. Fast food like hamburgers c. Clothes and accessories d. Bank and other personal services e. Household furnishings
a. Microprocessors
Kendra is the Manager of Marketing and Sales for a large electronics firm. In this role, she is responsible for creating specific plans for her department to implement the company's strategic plan. What type of manager is Kendra? a. Middle manager b. First-line manager c. Staff manager d. Top manager e. Line manager
a. Middle manager
Which function of management involves assigning tasks and authority, grouping tasks into departments, and allocating physical and human resources to ensure that the work of the company can be carried out efficiently and effectively? a. Organizing b. Monitoring c. Leading d. Planning e. Controlling
a. Organizing
Stephanie Ling has been asked to conduct a breakeven analysis. Which of the following would be considered a variable cost? a. Price of gasoline b. Property insurance c. Salaries d. Interest on a loan
a. Price of gasoline
What is the primary advantage of an S corporation over a C corporation? a. S corporations do not pay corporate income taxes. b. Unlike with C corporations, shareholders of S corporations are personally liable only to the extent of their investment. c. Shareholders of S corporations are not required to be U.S. citizens or residents. d. S corporations can issue multiple classes of stock. e. S corporations can have an unlimited number of shareholders, whereas C corporations cannot have more than 100 shareholders.
a. S corporations do not pay corporate income taxes.
________ are private venture capital firms licensed by the Small Business Administration to make equity capital or long-term loans available to small companies a. Small Business Investment Companies b. Business Incubators c. Entrepreneurial lenders d. Angel investors e. Crowdfunders
a. Small Business Investment Companies
Which is the simplest type of business ownership? a. Sole proprietorship b. C corporation c. Limited liability company d. Not-for-profit organization e. S corporation
a. Sole proprietorship
Which of the following is the most common but riskiest option in becoming a small business owner? a. Starting from scratch b. Obtaining a franchise c. Marketing an unknown product d. Buying an existing business
a. Starting from scratch
"Computers are outdated after three years and obsolete after five." What aspect of technology does the statement BEST represent? a. Technological innovation is expensive and time-consuming b. Technological innovation is necessary in order to remain competitive c. Technological innovation can be used to keep a company well-organized d. Technological innovation is changing the focus of how many businesses are run e. Technological innovation can help streamline businesses and cut costs
a. Technological innovation is expensive and time-consuming
All of the following are true about acquisitions EXCEPT: a. The companies involved mutually agree to form a new combined company. b. They usually take place in order to add products, services, technology, or achieve a competitive advantage. c. Management at the company being purchased may remain in place. d. One company purchases another company. e. Most acquisitions are friendly.
a. The companies involved mutually agree to form a new combined company.
Which of the following is an example of ratings and rankings of the level of corporate social responsibility of companies? a. The founder of Clif Bar, Inc. won the Business Ethics Award given by Business Ethics magazine b. A regional heating fuel supplier performs a social audit of how resources such as funding and manpower have been applied to the goals of corporate social responsibility c. A Time Warner press release discusses advances in corporate citizenship d. Wendy's used Twitter to fundraise for the Dave Thomas Foundation for adoption, contributing 50 cents for each retweet of their message e. The Bill and Melinda Gates Foundation, started by Microsoft chairman Bill Gates, has begun an initiative for a malaria vaccine, which has had a positive impact on the public perception of Microsoft.
a. The founder of Clif Bar, Inc. won the Business Ethics Award given by Business Ethics magazine
Which of the following does not define a B2B market? a. The market consists of small-volume purchases in a geographically dispersed area b. Buyers make complex purchasing decisions, often with formal buying procedures c. The purchasing process involves much personal selling and requires a close relationship between the buyer and the seller d. Buyers are more professional and make more rational purchasing decisions
a. The market consists of small-volume purchases in a geographically dispersed area
Eva runs a housecleaning business. She provides each employee with a written set of step-by-step instructions for how to use each cleaner and how to clean every aspect of a client's home. Eva routinely drops in unannounced to make sure her employees are doing as they're told. Eva knows her employees seek only the security of a job with a paycheck and do not care about the quality of the work they produce. Eva's management style can be classified as __________. a. Theory X b. Theory Y c. Theory Z d. expectancy theory e. strength-based management
a. Theory X
The theory of comparative advantage indicates that a. a country should sell to other countries the products it produces most efficiently and buy from other countries the products that it cannot produce as efficiently b. international trade will force domestic businesses to lose market share to foreign competitors c. countries that participate in international trade will have a higher standard of living d. a limit is placed on the amount of goods and services that can be traded
a. a country should sell to other countries the products it produces most efficiently and buy from other countries the products that it cannot produce as efficiently
The developing country of Alpha had a rule that none of its factories could be owned by companies from the developed country of Beta. If Alpha drops this rule, this would be an example of ___________. a. a decline in trade and investment barriers b. a total embargo c. technological innovation d. an increase in tariffs e. in-house outsourcing
a. a decline in trade and investment barriers
An entrepreneurial team is ________. a. a group of individuals with varied experiences and skills that come together to form a new venture b. a strategic alliance among two or more companies who collaborate to launch a new product c. a group of individuals who come together to discuss their feelings about working for their employer d. a group of individuals who meet regularly to provide mutual support to group members e. a group of students who create fictional business ventures to test out their viability
a. a group of individuals with varied experiences and skills that come together to form a new venture
Jose called an electrician to repair some appliances in his home. Which of the following terms BEST describes the electrician's repairs? a. a service b. a liability c. a good d. a benefit e. an appointment
a. a service
Judeo-Christian ethics include all of the following EXCEPT ________. a. accepting that there is no universal moral truth b. respecting property c. respecting relationships d. respecting one's mother and father e. being kind to others
a. accepting that there is no universal moral truth
James lives near a university and observes that almost every student uses a cell phone. He decides to open a small shop offering repair services for cell phones. His shop is an instant success. James has satisfied an area of need called ________. a. an opportunity niche b. fertile ground c. the marketplace d. a bandwidth need e. an oversaturated demand
a. an opportunity niche
There are several steps that are crucial to effective time management. Which of the following steps will NOT improve the productivity of a business? a. answering all emails as soon as they arrive b. determining the level of urgency of paperwork c. identifying clear agendas for meetings d. crossing off tasks on the schedule as soon as they are completed e. successfully delegating tasks to others
a. answering all emails as soon as they arrive
Which of the following is NOT one of the factors in the economic environment that will affect customer's willingness and ability to spend their money on a firm's product? a. changes in the amount of bonuses paid to bank executives b. changes in the exchange rate c. changes in the economic growth rate d. changes in the unemployment rates e. changes in interest rates
a. changes in the amount of bonuses paid to bank executives
B2B and B2C interactions are a. common now because of the explosive growth of e-commerce b. important only for businesses, not consumers c. two different names for the same thing d. dominated by sole proprietorships
a. common now because of the explosive growth of e-commerce
Mr. Gonzales wants to help fellow farmers in his community, but he is not interested in making a personal profit. His main goal is to join with other farmers so they can have better bargaining power when purchasing supplies. Which of the following business types will Mr. Gonzales MOST likely form? a. cooperative b. general partnership c. sole proprietorship d. not-for-profit corporation e. C corporation
a. cooperative
Traci and Sally have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. One way for Traci and Sally to avoid the risk would be to organize their company as a ____________. a. corporation b. merger c. sole proprietorship d. general partnership e. limited partnership
a. corporation
An advertising campaign that attempts to reposition is an example of __________. a. creating a new vision b. creating a new use c. repackaging d. lowering the price e. finding a new market
a. creating a new vision
A continuous decrease in the level of prices over time is called _____. a. deflation b. deflection c. disinflation d. inflation e. depression
a. deflation
According to the law of supply, the amount of a good or service supplied will increase as the price increases, and decrease as the price decreases. This direct relationship exists because supply is ________. a. derived from a producer's desire to maximize profit b. affected by changes in technology c. not dependent on the resources required to produce the product d. not affected by the quantity of similar or substitute products e. affected by the number of suppliers
a. derived from a producer's desire to maximize profit
A good strategic plan a. determines the best ways to accomplish goals of an organization b. is specific and tactical c. concentrates only on what is going on inside an organization, not outside an organization d. is wide ranging
a. determines the best ways to accomplish goals of an organization
When shoppers boycotted Target because the chain had a policy of not allowing solicitors, including the Salvation Army , to collect money outside their doors, Target responded by ___________. a. donating $9 million to Salvation Army b. launching an advertising campaign claiming that the company supported a variety of charities and did not include the Salvation Army c. creating a department in its stores for inexpensive used goods d. allowing solicitors, including the indigent homeless, to solicit money just inside the front entrances to their stores e. defensively pointing to the 5 percent of their income they had invested in local communities since 1946
a. donating $9 million to Salvation Army
Luis works as a marketing manager for a consumer products company. He feels strongly about the product lines he manages and is dedicated to the company's mission and ideals. Luis' product lines are among the best sellers in the company. According to the Q12, Luis is classified as ________. a. engaged b. not engaged c. actively disengaged d. moderately disengaged e. unengaging
a. engaged
While many _____ ventures are based on innovative ideas, others revolve around improvements to existing goods or services. a. entrepreneurial b. governmental c. franchise d. not-for-profit
a. entrepreneurial
Franchises are often quite _____. a. expensive b. easily acquired c. legally simple d. attractive from a tax standpoint
a. expensive
Since goods are more widely manufactured and sold in the global marketplace, this has caused U.S. companies to ________. a. face difficult decisions about ethical standards on tough issues such as child labor, pollution, fair wages, and human rights b. have more control over ethical standards in other countries since governments are eager to meet the expectations of companies that wish to operate within their borders c. close down offshore manufacturing facilities because of different ethical standards d. ignore ethical standards in their U.S. facilities to make them more competitive e. respect and care for their employees in the United States with higher ethical standards
a. face difficult decisions about ethical standards on tough issues such as child labor, pollution, fair wages, and human rights
Benjamin has a full-time job and has decided to work toward earning his master's degree at a local university. Some days he works from 7:00 A.M. until 3:30 P.M. so he can leave in time to attend his 4:00 P.M. classes. The rest of the week, Benjamin works from 8:00 A.M. until 4:30 P.M. From this example, we know Benjamin's company allows ________. a. flextime schedules b. compressed workweeks c. job sharing d. permanent part-time schedules e. telecommuting
a. flextime schedules
What does a management information system (MIS) do that an IT system would typically not do? a. focus on applying IT to solve business problems b. focus on pure technical knowledge c. focus on reducing information flow among employees d. focus on identifying management problems in IT departments e. focus on creating custom software
a. focus on applying IT to solve business problems
A snack food bag is white with plain black letters spelling, "Corn Chips". This is most likely an example of a _________ brand. a. generic b. co-brand c. private d. manufacturer's e. family
a. generic
A code of conduct ________. a. gives employees guidance on how to handle themselves in challenging ethical situations b. describes the company's goals and aspirations c. evaluates a company's acts and cites any legal violations it might have committed d. reports on the legal compliance of a corporation e. defines the core purpose of the organization
a. gives employees guidance on how to handle themselves in challenging ethical situations
West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the: a. globalization of production. b. localization of markets. c. increasing differences in tastes and preferences of consumers across the world. d. nationalization of private enterprises. e. rise of communism throughout the globe.
a. globalization of production.
What are the substitute goods? a. goods that can be used in place of other goods b. goods that can be modified to replace others c. goods that complement others d. goods that can be used to repair others e. goods that can experience seasonal changes in demand
a. goods that can be used in place of other goods
Ross's work team is made up of various members of the art department who have all worked together for many years. They like that they work in synch and rarely have to explain things to each other because they are so much alike. A threat to Ross's work team is narrow-mindedness caused by ______________. a. groupthink b. group flow c. virtual think d. virtual flow e. the Hawthorne effect
a. groupthink
Ken owns a food services company and recently negotiated a contract with a new restaurant chain. The satisfaction Ken feels for this success is a(n)_______________. a. intrinsic motivator b. extrinsic motivator c. resonance motivator d. virtual motivator e. belonging motivator
a. intrinsic motivator
A SWOT analysis a. is an important part of developing a strategic plan b. is one type of contingency planning c. helps translate the tactical plan in instructions for employees d. leads to an effective mission statement
a. is an important part of developing a strategic plan
Since Donna was laid off from her job a few months ago, she has enjoyed having more time to relax, exercise, and be with her family. Now she is wondering whether she should start her own business. Donna should consider purchasing a franchise ONLY if she __________. a. is prepared to handle the heavy workload that comes with a franchise b. requires complete creative control c. does not have enough capital to start an independent business d. wants the protection from competition that the franchisor would guarantee e. is interested in the products sold by a particular franchise
a. is prepared to handle the heavy workload that comes with a franchise
Theory Z is different than Theory X or Theory Y because a. it relies heavily on collaborative decision making b. it is authoritarian and hard line c. it is often seen in mass-manufacturing settings d. managers believe people will seek out responsibility
a. it relies heavily on collaborative decision making
Extrinsic motivators include such things as a. knowing your supervisor cares about you b. believing your opinion matters c. knowing there is a large financial bonus for good work d. working for a company whose mission is meaningful to you
a. knowing your supervisor cares about you
The California Nurses Association was formed to negotiate the unique salary needs and working hour structures of direct-care nurses with the hospitals in which they work. The CNA is an example of a ___________. a. labor union b. workforce profile c. diversification d. special interest group e. strikebreaker
a. labor union
Clarke Santiago and his wife Teresa, parents of two children, opened a buffet restaurant last year. They've been so successful with their family-style atmosphere that some investor friends have offered funding to expand into two additional locations. The investors also want to consider opening several more restaurants each year. After thinking it over, the Santiagos decided to stick with one restaurant and add catering services—a move that should provide them with a satisfactory income. The Santiagos' business is a good example of a _____. a. lifestyle business b. sole proprietorship c. start-up business d. franchise
a. lifestyle business
Nick is investing $25,000 in a partnership with his sister and brother. Nick does not want to be an active part of the partnership and can only afford to risk the $25,000 he is investing. His brother and sister agree to let him share a proportionate amount of the profits. Nick is a(n) ________ in this partnership. a. limited partner b. junior partner c. general partner d. sole partner e. unlimited partner
a. limited partner
The final step in the marketing process is __________. a. maintaining good customer relationships b. target marketing c. product placement d. market research e. promotion
a. maintaining good customer relationships
DSSs are used most often by a. managers who make decisions based on current data b. employees who decide how to solve technical problems c. clerical staff who organize and format documents and reports d. trainers who teach staff and employees new software products
a. managers who make decisions based on current data
When the supply curve and the demand curve for a single product or service are shown on the same graph, the point at which the intersect identifies the _____. a. market price of the good b. total profit earned by the producers c. number of substitute goods available d. quality of the good or service being purchased e. amount of the surplus to be anticipated
a. market price of the good
When a magazine refuses to accept advertisements featuring "size zero" models on the grounds that it could encourage eating disorders in young women, this is an example of paying attention to which pillar of corporate social responsibility? a. marketing and consumer issues b. human rights and employment standards in the workplace c. community and good neighbor policies d. ethical sourcing and procurement e. environmental, health, and safety concerns
a. marketing and consumer issues
A(n) __________ occurs when two companies of about the same size mutually agree to create a new combined company. a. merger b. acquisition c. takeover d. synergy e. cooperative
a. merger
A horizontal organization requires a. more use of collaborative teams b. a strict chain of command c. a tall organization chart d. None of the above
a. more use of collaborative teams
Which of the following is NOT an example of how corporate social responsibility can be consistent with profitability? a. offering bonuses to employees who embellish profit and loss statements b. offering a small discount to customers of a coffee shop who bring their own reusable cup c. encouraging employees to volunteer within the local community d. improving environmental practices in factories and plants to reduce waste e. paying employees in a developing nation more than the minimum required
a. offering bonuses to employees who embellish profit and loss statements
Governments with nonconvertible currency are a. often developing countries that are trying to protect themselves from capital flight b. countries that have strong economic health and prospects of growth c. are planning to move toward a floating exchange rate system d. developed countries that are protecting the value of their currency
a. often developing countries that are trying to protect themselves from capital flight
A software company uses engineers in India to perform maintenance functions on software designed in the United States, and it also uses Indian accountants to compile tax returns. According to this information, the U.S. based company is most likely using: a. outsourcing. b. job sharing. c. job rotation. d. franchising. e. apprenticeship.
a. outsourcing.
The online advertising acronym PPC stands for ___________. a. pay-per-click b. person-pays-cash c. players-pay-cash d. purchase-price-charge e. push-pull-charging
a. pay-per-click
Felix is concerned about saving money for retirement. His company offers him a plan that requires him to contribute a specific amount of money each year through payroll deductions. At retirement, Felix will receive the monies he contributed as well as the fund's investment earnings. Felix is contributing to a(n) ________. a. pension plan b. ESOP c. 401(k) plan d. incentive-based payment structure e. profit sharing plan
a. pension plan
Ben receives an email purporting to be from his bank, advising him that new passwords are being distributed. The email asks him to enter his current password, as well as other personal information. Ben sends the requested information and then notices the next day that funds have been withdrawn from his account without his knowledge or consent. Upon contacting the bank, Ben learns that the original email was a fraud. Ben is a victim of ________. a. phishing b. adware c. electronic monitoring d. spyware e. spam
a. phishing
A corporation with a matrix organization system a. pools people into groups by skill b. makes sure teams have more responsibility for the outcome of their work c. organizes based on functional area d. collects single-function firms into a network that collaborates on a product
a. pools people into groups by skill
The Crusher Corp. charges very low prices to drive its only competitor out of business. This is an example of ___________ pricing. a. predatory b. penetration c. demand-based d. brand e. loss leader
a. predatory
A bag of snack food says, "Walmart's Corn Chips." This is an example of a(n)________ brand. a. private b. manufacturer's c. family d. generic e. individual
a. private
A group of companies that brand together to purchase goods or services is called a(n)_________. a. procurement exchange b. infomediary c. supply chain d. vertical portal e. brokering site
a. procurement exchange
Owners of small businesses are responsible for much of the _____ of U.S. business. a. product innovation b. healthcare shortfall c. short-term debt d. wage escalation
a. product innovation
Goods tracked by the PPI include _____ and _____. a. raw materials; finished goods sold to retailers b. recreation; apparel c. transportation; communication d. education; medical care e. energy prices; prices for services
a. raw materials; finished goods sold to retailers
Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that: a. significant differences still exist among national markets. b. cultural diversity has been replaced by global uniformity. c. the global market is less complex than national markets. d. a company does not have to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets. e. the social norms in a country do not affect purchase decisions of consumers.
a. significant differences still exist among national markets.
Joe is very confident about his purchase of a franchise from a well-known full-service restaurant company. What is one of the things he MOST likely did before he bought the franchise? a. spent months researching the franchisor's background and track record b. developed a menu of innovative dishes that would differentiate his restaurant from competitors c. came up with a unique plan to streamline the daily operations of the franchise d. trained staff to help him run the business e. hired a designer to design the restaurant's layout and decor
a. spent months researching the franchisor's background and track record
What represents the highest level of planning in an organization? a. strategic planning b. tactical planning c. operational planning d. contingency planning e. emergency planning
a. strategic planning
When the wife of Mark Whitacre, who was involved in illegal activities at Archer Daniels Midland (ADM), threatened to divorce him if he did not end his involvement with the price fixing, she demonstrated an example of ________. a. strong personal ethics b. ethical ambiguity c. compromised business ethics d. flexible ethical standards e. legal oversight
a. strong personal ethics
In a partnership, all-profits and losses flow through each partner's ________. a. tax returns b. savings c. liabilities d. investments e. mortgages
a. tax returns
Sarah is very skilled lead programmer. She is well-versed not only in her job, but also in all aspects of the work performed by her employees, and she can successfully coach and guide them in carrying out their specific tasks. Sarah demonstrates a high level of __________. a. technical skills b. interpersonal skills c. decision-making skills d. conceptual skills e. business savvy
a. technical skills
Which of the following is NOT a legally defensible reason for terminating an employee? a. testifying against the company in a legal proceeding b. downsizing and/or restructuring of company c. increased use of technologies replacing workers d. outsourcing and/or offshoring jobs e. repeated documentation of poor performance
a. testifying against the company in a legal proceeding
The oldest and largest free trade area in the world is __________. a. the European Union (EU) b. MERCOSUR c. North American Free Trade Agreement (NAFTA) d. Association of Southeast Asian Nations (ASEAN) e. the Asia-Pacific Economic Cooperation (APEC)
a. the European Union (EU)
Small business owners can seek professional advice at no cost through __________. a. the Service Corps of Retired Executives b. Fortune 500 companies c. the Volunteer Corps of America d. McKinsey & Company management consulting e. the Better Business Bureau
a. the Service Corps of Retired Executives
The value of the CPI's "market basket" is determined by __________. a. the combined prices of a specified set of goods and services b. the net profit earned by businesses selling a specified set of goods and services c. the price of all goods and services purchased in a particular period d. the cost of production for a specified set of goods and services in a given market e. the difference between the prices of the raw materials used to create goods and the prices the consumer actually pays for these finished goods
a. the combined prices of a specified set of goods and services
When a company's revenue is greater than its expenses, it means that ________. a. the company earns a profit b. the company spends more than it earns c. the company needs to increase its spending d. the company must increase its productivity e. the company's income is decreasing
a. the company earns a profit
The average total of goods and services required to maintain a particular standard of living is called ________. a. the cost of living b. total household expenditure c. the cost of fundamental human needs d. the cost/price index e. quality of life
a. the cost of living
The World Intellectual Property Organization requires that e-businesses comply with the laws of___________. a. the country in which they are based in b. every country in which they do business c. every country that is part of the WIPO Pact d. the European Union and the United States e. the United Nations
a. the country in which they are based in
A demand curve illustrates__________. a. the effects of price on quantity demanded b. that as price increases, demand stays the same c. the effects of supply on quantity demanded d. that demand decreases as price decreases e. the effects on population changes on demand
a. the effects of price on quantity demanded
A supply curve illustrates ________. a. the effects of price on quantity supplied b. that as supply increases, the price stays the same c. the effects of price on quantity demanded d. that as supply decreases, demand decreases e. the effects of changes in resource prices on supply
a. the effects of price on quantity supplied
The reserve requirement is defined as _________. a. the minimum amount of money banks hold in reserve to cover deposits b. the maximum amount of money banks can borrow from one another c. the minimum amount of money that can be deposited by banks in the Federal Reserve d. the maximum amount of money that is insured by the Federal Deposit Insurance Corporation e. the maximum amount of money banks can borrow from the Federal Reserve
a. the minimum amount of money banks hold in reserve to cover deposits
The term "business cycle" refers to ____________. a. the periodic increases and decreases of the economy b. the periodic purchase of goods and services by the government c. the increases and decreases in the rate of inflation d. the periodic growth of the Federal Reserve System e. the periodic increases and decreases in the GDP due to seasonal factors
a. the periodic increases and decreases of the economy
Data warehousing is a. the storing of terabytes of transaction data b. not used when DBMSs are in place c. is not used now because data marts have replaced it d. is the management of large quantities of paper records
a. the storing of terabytes of transaction data
The theory that states that specialization and trade are mutually beneficial to all economies involved in trade is called the a. theory of comparative advantage b. theory of beneficial trade c. theory of absolute advantage d. theory of relative trade
a. theory of comparative advantage
The nations of Tweedle-dee and Tweedle-dum do not trust each other. Tweedle-dee is convinced that if it lowers its trade barriers, Tweedle-dum will not lower its barriers. Therefore, Tweedle-dee keeps its trade barriers high. This is an example of the ____________ argument in favor of protectionism. a. threat of retaliation b. infant-industry c. national security d. cheap foreign labor e. absolute advantage
a. threat of retaliation
What is a company's unique responsibility to its stockholders? a. to make a profit b. to produce products that the public will find useful c. to provide jobs to workers d. to create a stable balance sheet between income and expenses e. to be a good corporate neighbor
a. to make a profit
In a sole proprietor ownership, if business assets are not enough to pay business debts, then personal assets, such as the sole proprietor's house, personal investments, and retirement plans can be used to pay the debt. This is called ______. a. unlimited liability b. limited liability c. non-liability d. double taxation e. sole liability
a. unlimited liability
A dance studio and a dancewear manufacturer decide to combine. This type of merger is called a ________. a. vertical merger b. horizontal merger c. product extension merger d. conglomeration e. market extension merger
a. vertical merger
A merger involving a computer manufacturer and an electronics retailer that sells its computers would be an example of a _________. a. vertical merger b. horizontal merger c. product extension merger d. conglomeration e. market extension merger
a. vertical merger
Which chart, also known as a fishbone diagram, is used to identify all the contributing factors to a problem? a. Cause-and-effect diagram b. Histogram c. Run chart d. Pareto chart e. Scatter plot
a. Cause-and-effect diagram
When managers try to analyze a problem or opportunity, identify different courses of action, and select and implement what they perceive to be the optimum course of action, they are using _______ skills. a. decision-making b. tactical c. conceptual d. interpersonal e. technical
a. decision-making
Hadar is a __________, as he directly supervises lower-level employees. a. first-line manager b. middle manager c. chief operations officer d. controller e. executive officer
a. first-line manager
Acceptable
able to be received the way it is; worthy; satisfactory
performance management
an approach that combines goal setting, performance appraisals, training, and development into a unified and ongoing process
communism
an economic system in which a state's government makes all economic decisions and controls all the social services as well as many of the major resources required for the production of goods and services
capitalism
an economic system that allows freedom of choice and encourages private ownership of the resources required to make and provide the goods and services we enjoy
Not-for-profit corporation
an incorporated business that does not seek a profit and instead utilizes revenue available after normal operating expenses for the corporation's declared social/educational goals
___________ shifts, such as age, gender, ethnicity, and marital status, and changing values, can signal opportunities for businesses. a. Utility b. Demographic c. Political d. Technological e. Economic
b. Demographic
Carson is involved in a plan that gives him stock in his company based on the number of years he has worked there. His stock is held in trust for him by the company until he leaves or retires. Because of his ownership in the company, Carson feels more connected to the business and is motivated to ensure its success. Carson is participating in a(n)__________. a. employee stock purchase plan b. ESOP c. pension plan d. 401(k) e. profit sharing plan
b. ESOP
Drew wants to make sure his efforts at work are rewarded fairly, in a way that is comparable to his co-worker Aryanna. Which theory of motivation would this best reflect? a. Expectancy theory b. Equity theory c. Three needs theory d. Motivator-hygiene theory e. Theory Y
b. Equity theory
GATT stands for ________ on tariffs and trade. a. Global Achievement b. General Agreement c. Global Argument d. General Argument e. Global Agreement
b. General Agreement
The seven basic tools for monitoring a business include all of the following except a. Pareto analysis b. Monte Carlo statistical simulations c. scatter plots d. cause-and-effect diagrams
b. Monte Carlo statistical simulations
A consumer products company competes around the world primarily by customizing or differentiating its product to meet unique local needs, tastes, or preferences. the company is using a ___________ strategy a. Transnational b. Multidomestic c. Domestic d. Global e. National
b. Multidomestic
Which of the following is not a reason to hire a contingent worker? a. To fill in for absent employees b. Not enough office space for a full-time employee c. To supplement staff during particularly busy times d. To evaluate how a person performs on the job before hiring permanently them
b. Not enough office space for a full-time employee
__________ are short-term targets that are designed to help achieve goals. a. Plans b. Objectives c. Missions d. Tactics e. Visions
b. Objectives
Jackson Paulson works as a waterskiing instructor at Migis Lodge on Sebago Lake. He claims unemployment from October through April. Jackson experiences which type of unemployment? a. Frictional b. Seasonal c. Cyclical d. Structural
b. Seasonal
U.S importers prefer a(n) ________ dollar. a. Steady b. Strong c. Depreciation d. International e. Weak
b. Strong
Which of the following statements is TRUE about the impact of technology on employee privacy? a. Technology ensures that employees can access more private information about their fellow employees b. Technology allows companies to access information about employee's behavior on the job c. Technology makes it more difficult for companies to access private information about employees d. Technology ensures that individuals will have the same privacy protections at work as they do at home e. Technology protects employees from being monitored in the workplace
b. Technology allows companies to access information about employee's behavior on the job
Bill Wertz runs a transportation service that caters exclusively to the residents of retirement communities. Bill's business is taking advantage of which of the following marketing environments? a. The competitive environment b. The sociocultural environment c. The technological environment d. The economic environment
b. The sociocultural environment
Jeanette has a successful organic spa business in which she gives massages, facials, and organic body treatments. Last summer, another organic spa opened up in town. The supply curve for Jeanette's business would shift in which direction? a. To the right b. To the left c. No change would occur d. There is a shift along the demand curve only
b. To the left
In order to enter the Spanish market, a Moroccan firm establishes a store that is entirely owned by the Moroccan firm. This is an example of a(n) ________. a. Exporting Agreement b. Wholly Owned Subsidiary c. Contract Manufacturing Arrangement d. Strategic Alliances e. Joint Venture
b. Wholly Owned Subsidiary
A franchise is a method of doing business in which__________. a. an entrepreneur sets up and manages a small business based on an innovative idea or product b. a company's products or services are sold to independent third-party operators under the company's name c. a company buys ownership of another company and absorbs its employees and customer base into its own structure d. a business is able to achieve rapid sales growth in the service sector due to taking advantage of many advertising opportunities e. a small company is bought by a larger one and is absorbed into its existing structure
b. a company's products or services are sold to independent third-party operators under the company's name
The cheap foreign labor argument for protectionism refers to __________. a. an undeveloped domestic industry's workers b. a lower wage often earned by many foreign workers c. a trading partner increasing trade barriers on work done by citizens d. an industry critical to national security being protected from foreign workers e. selling a product at a price below the price charged in the producing country
b. a lower wage often earned by many foreign workers
With creative and abstract work, studies find that the principal motivators are a. financial incentives b. autonomy, mastery, and purpose c. competitive push for advancement d. reduction in hours involved at work
b. autonomy, mastery, and purpose
"Nice guys finish last." and "We must stand for right against wrong." are examples of ________. a. behaviors b. beliefs c. virtues d. goals e. belief origins
b. beliefs
After accepting a new job and moving to a new city, Tania felt isolated and unhappy. After a few months, she became friends with some of her coworkers and joined a book club. According to Maslow, Tania fulfilled her need for _____________. a. safety b. belonging c. self-actualization d. physiological e. esteem
b. belonging
The practice of corporate philanthropy a. is only a marketing strategy b. can build stronger relationships with employees and the community at large c. states that success can be found by competing fiercely to provide the lowest price d. is a strategy that works only in certain segments of industry where there is a lot of media attention
b. can build stronger relationships with employees and the community at large
A U.S consumer electronics company has to shut down because it cannot compete against foreign manufacturers. For the United States, this is an example of a(n)__________ of international trade. a. benefits b. cost c. theory d. cause e. incentive
b. cost
Exchange rates affect international businesses because a. nonconvertible currency is worthless b. currency depreciation and appreciation changes the relative price of imports and exports c. U.S. exporters prefer a strong dollar d. exchange rates fluctuate after the G20 meeting each year
b. currency depreciation and appreciation changes the relative price of imports and exports
CRM stands for__________. a. communications, retailing, marketing b. customer relationship management c. consumer reaction marketing d. consumer relations manager e. customized relative management
b. customer relationship management
Which of these falls directly under the responsibility of first-line managers? a. corporate benchmark setting b. day-to-day operations c. resource allocation for strategic planning d. crisis management planning e. plans with 1-3 year timeline
b. day-to-day operations
In the United States today, labor membership is a. increasing because of a shift toward service industries b. declining because of a shift toward service industries c. no longer legal in many states d. decreasing because unions are being replaced by bargaining units
b. declining because of a shift toward service industries
Mariah is a manager who enjoys having employees actively participate in the decision-making process. She listens to what employees say prior to making decisions. She would best be described as a(n) ________ leader. a. autocratic b. democratic c. dictatorial d. visionary e. aristocratic
b. democratic
Marketing departments do NOT serve which of the following functions? a. establish meaningful relationships with customers to instill loyalty b. determine what products to produce and what products not to produce c. establish desirable pricing strategies d. promote an organization by persuading customers that their products are the best e. keep an eye on what people need and want
b. determine what products to produce and what products not to produce
A(n) _____ is someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it. a. small business owner b. entrepreneur c. executive d. marketer
b. entrepreneur
A(n)_________ is someone who takes the risk of creating, organizing, and operating a business, usually to satisfy an unmet need in the marketplace. a. business owner b. entrepreneur c. venture capitalist d. innovator e. opportunist
b. entrepreneur
When Shell Oil works toward reducing emissions of nitrous oxide and sulfur dioxide from its facilities, which of the following pillars of corporate social responsibility is this NOT an example of? a. environmental, health, and safety concerns b. ethical sourcing and procurement c. marketing and consumer issues d. human rights and employment standards in the workplace e. community and "good neighbor" policies
b. ethical sourcing and procurement
Airbus competes on the basis of price while selling a standardized or homogeneous product. The company is using a ___________ strategy. a. transnational b. global c. multidomestic d. domestic e. national
b. global
Doing business in countries with socialist economies that are government controlled a. is not legal for businesses headquartered in the United States b. happens often today despite political tension c. almost ensures profit because socialist economies have lower costs of production d. is unprofitable because of embargo sanctions
b. happens often today despite political tension
Which of the following is NOT one of the most common consumer market segmentation classifications? a. geographic b. home ownership c. behavioral d. psychographic e. demographic
b. home ownership
As a result of their influence on the quantity, variety, and quality of products, trade barriers ___________ domestic consumers. a. give an absolute advantage to b. hurt c. have no effect on d. help e. appease
b. hurt
As a business owner, you're responsible for making the decisions that pertain to the profitability of your business. This decision-making freedom best reflects the _____ advantage of small business ownership. a. financial b. independence c. lifestyle d. first-mover
b. independence
Despite their benefits, traditional pyramidal management has been criticized as being ________. a. top-heavy b. inflexible c. uneconomical d. impersonal e. unprofitable
b. inflexible
The Small Business Administration offers an array of programs to help small business owners and prospective business owners. Services include all of the following except assistance in_____. a. obtaining financing b. interviewing job candidates c. managing operations d. developing a business plan
b. interviewing job candidates
In business relations all of the following are influenced by our personal ethics EXCEPT ________. a. thoughts b. job titles c. actions d. words e. behavior
b. job titles
A partner who invests money in a business but is not involved in the day-to-day operation and is only risking capital equal to what they have contributed is called a _________. a. general partner b. limited partner c. partial partner d. corporate investor e. back-up partner
b. limited partner
Shabnam and Mahir own a car wash. Shabnam runs the car wash, and Mahir primarily just provides capital in return for some equity and share of the profits. Mahir is a(n) __________ in the business. a. angel investor b. limited partner c. general partner d. full partner e. restricted partner
b. limited partner
Shauna is the sales manager for a regional chain of bookstores. She reports to the executive vice president of sales and marketing, and each sales manager reports to Shauna. Shauna would be considered a a. top manager b. middle manager c. first-line manager d. Both b and c
b. middle manager
The organization you work for just hired a new CEO. Within the first week in her new position, the CEO sent a memo to the firm's board of directors and senior managers that defined the purpose of the business as well as the basic goals and philosophies of the business. This document serves as a draft of a new a. vision b. mission statement c. goals and objective statement d. tactical plan
b. mission statement
There are four coffee shops in your town. All of them claim to have the "freshest tasting coffee." Each shop advertises the unique benefits of its coffee and prices. This is an example of a. pure monopoly b. monopolistic competition c. a regulated monopoly d. an oligopoly
b. monopolistic competition
Which of the following is NOT a way that technology is used in CRM? a. calling consumers to persuade them to try a company's products b. personalizing communication to address customer's particular needs c. offering products tailored specifically to customers' needs and desires d. suggesting future purchases based on prior purchases or browsing interests e. emailing coupons to customers who have "liked" a company on Facebook
b. personalizing communication to address customer's particular needs
Maggie wants to start a fine dining restaurant in her town and dreams someday of having a chain of restaurants all over the country. She can be considered a growth entrepreneur because she__________. a. believes that revenues from her restaurant will grow rapidly b. plans to have her business expand beyond her original restaurant c. understands that there is an increasingly large market for dining experiences d. wants to be able to run her business out of her home e. hopes that her restaurant will attract customers
b. plans to have her business expand beyond her original restaurant
Victor is using the Internet to research past charges that have been filed against the pharmaceutical company Pharmacure. Victor is primarily trying to find out about Pharmacure's ________. a. code of ethics b. record of legal compliance c. mission statement d. corporate culture e. corporate vision
b. record of legal compliance
Ethics are based on a. the current popular culture b. religious, cultural, or ethnic systems c. society's legal system d. each situation and the moral consequences of an action
b. religious, cultural, or ethnic systems
What is the best definition for data? a. opinions about the effectiveness of a business b. representation of facts or ideas c. numbers or facts organized to be useful d. statements of facts or ideas e. information used to improve business practices
b. representation of facts or ideas
A small business that buys goods from other firms and sells them to consumers is known as a _____. a. franchiser b. retailer c. wholesaler d. distributor
b. retailer
Ophelia has a small amount of equity in her father's candy factory, which is a C corporation. This makes her a __________. a. member of the Board of Directors b. shareholder c. chief operations officer d. limited partner e. general partner
b. shareholder
A dishwasher is an example of a(n)___________ good. a. convenience b. shopping c. maintenance, repair, and operating d. unsought e. specialty
b. shopping
When companies compete aggressively on the basis of price, quality, and brand-name image because consumers carefully compare brands, these businesses are most likely selling_________ goods and services. a. convenience b. shopping c. specialty d. unsought
b. shopping
Paula is thinking of making homemade perfumes and selling them to her relatives. She has not filed any legal documents to start her business. Paula would be operating as a(n) ________. a. limited liability company b. sole proprietor c. S corporation d. unlimited partner e. corporation
b. sole proprietor
Phishing can be used to a. minimize the taxes owed to the federal government b. steal identity information from unsuspecting clients c. record the keystrokes typed in when someone is logging into a password-protected site d. help save storage space on mobile devices
b. steal identity information from unsuspecting clients
A laissez-faire leader would a. challenge every decision b. take a very hands-off approach to management c. believe in strong involvement in employee teams d. be very important to a company experiencing a crisis
b. take a very hands-off approach to management
The management team of Company A decides to offer to buy the stock from all the shareholders of Company B at a higher price than current market value. Company A is launching a a. proxy fight b. tender offer c. friendly acquisition d. friendly takeover
b. tender offer
Several investors are looking for information about an up-and-coming, Soft Sip. Which government agency ensures that the investors have access to this information? a. the Equal Employment Opportunity Commission b. the Securities and Exchange Commission c. the United States Department of Agriculture d. the United States Congress e. the Department of Health and Human Services
b. the Securities and Exchange Commission
Which of the following is the limit of liability of a limited partnership? a. the amount of their personal assets b. the amount of their investment c. the amount of his/her share of the profits d. the amount of business capital e. the amount of the total profits
b. the amount of their investment
What does the monthly consumer price index (CPI) measure? a. the number of new products purchased by consumers b. the changes in prices of goods and services purchased by households c. the changes in prices of goods and services purchased by households d. the changes in prices of the resources used to create consumer goods e. the amount of products and services manufactured domestically
b. the changes in prices of goods and services purchased by households
What is the money supply? a. the combined amount of money available in privately owned accounts b. the combined amount of money available within the economy c. the amount of money the government is allowed to spend to stimulate economic growth d. the total amount of money held in the Federal Reserve Bank e. all the coins and bills held by people, businesses, and banks
b. the combined amount of money available within the economy
A group of people elected by a firm's shareholders to oversee the operation of a corporation are a. the firm's CEO, CFO, and COO b. the firm's board of directors c. the firm's line managers d. All of the above
b. the firm's board of directors
Which of the following is NOT a legal right under the Consumer Bill of Rights? a. the right to be heard b. the right to bear witness c. the right to safety d. the right to choose e. the right to information
b. the right to bear witness
All of the following statements about open market operations are true EXCEPT__________. a. they are used by the Federal Reserve to change the Federal Funds Rate b. they are used by the Federal Reserve to change the discount rate c. they are used by the Federal Reserve to buy and sell mutual funds d. they are used by the Federal Reserve to transact with securities dealers e. they are probably the most influential tool the Federal Reserve has to alter money supply
b. they are used by the Federal Reserve to change the discount rate
Which of the following best defines the essential task of self-reporting? a. to define values and ethical standards in the workplace b. to document the company's actions regarding corporate social responsibility to its stockholders c. to donate profits or resources to socially conscious and environmental organizations d. to submit all financial accounts to public scrutiny e. to use social media to promote awareness of and raise funds for worthy causes
b. to document the company's actions regarding corporate social responsibility to its stockholders
Why does the U.S. Bureau of Labor Statistics evaluate the CPI's "market basket"? a. to ensure that it reflects current trends in the production of goods and services b. to ensure that it reflects current consumer spending habits c. to ensure that it reflects current wholesale spending habits d. to ensure that it reflects current consumer demand e. to ensure that it reflects current wholesale resource costs
b. to ensure that it reflects current consumer spending habits
Which of the following is NOT a reason to seek out temporary work? a. to earn income while maintaining a flexible schedule b. to join retirement and pension plans at various companies c. to experience different types of work and to meet many people d. to gain real-world experience in an industry you'd like to pursue on a full-time basis e. to gain real-world experience in a field in which you may be interested
b. to join retirement and pension plans at various companies
When Mu Manufacturing Co. exports their technological know-how in exchange for a fee, they are entering foreign markets through a ________. a. strategic alliance b. turnkey project c. franchise d. wholly-owned subsidiary e. licensing agreement
b. turnkey project
Among the disadvantages of business ownership, both brothers would probably balk at the prospect of _____. a. financial risk b. undesirable duties c. time commitment d. stress
b. undesirable duties
Among the disadvantages of business ownership, Jacob would probably balk at the prospect of_____. a. financial risk b. unlimited liability c. time commitment d. stress
b. unlimited liability
James Rodriguez wants to spend more time at home with his two-year-old granddaughter and is considering leaving his company. He could receive three months' pay and the same retirement package he will be eligible for in three years' time if he leaves now. This type of offer is called a(n) a. independent consultant status b. worker buyout c. retirement d. compressed workweek
b. worker buyout
Raw and processed materials
basic inputs that become part of a finished good
Baby Boomers
born between 1943-1960 "the veterans"
Social intrapreneurs
build and develop ventures within a company that are designed to identify and solve large-scale social problems
Transnational strategy
businesses compete by offering a customized product while simultaneously selling at the lowest possible price (face strong costs pressures and strong pressure for differentiation)
Global strategy
businesses compete primarily on the basis of price while selling a standardized product
importing
buying products from another country
Enable others to act
by giving people access to information and empowering them to work to their fullest potential
Model the way
by serving as a living example of the ideals in which they are asking their employees to share
Imagine that New England Airlines, a regional carrier in Rhode Island, decides to merge with Porter Airlines, a carrier based in Toronto, Canada. What type of merger would this represent? a. A conglomeration b. A vertical merger c. A market extension merger d. A hostile takeover e. A horizontal merger
c. A market extension merger
LinYee created a document that includes a situational analysis and a discussion of the target market. LinYee's document is called a. Marketing research b. A marketing mix c. A marketing plan d. A marketing segmentation
c. A marketing plan
Angela owns a custom jewelry business. She and her employees design and market the jewelry, but she uses outside manufacturers to produce the pieces. Employee benefits and payroll are administered by still another company. What type of organization does Angela operate? a. A matrix organization b. An inverted organization c. A network organization d. A staff organization e. A line organization
c. A network organization
An insurance company was posting a job notice about a new position within the company. The notice stated that a younger employee was desirable because they thought he/she would stay with the company for a longer period of time. This kind of behavior is considered illegal under the _____________. a. Civil Rights Act of 1964 b. Americans with Disabilities Act c. Age Discrimination in Employment Act d. Workplace Diversity Act e. Discrimination Act of 1999
c. Age Discrimination in Employment Act
Omni Hotels is renowned for having an environment in which customers are treated like royalty, and employees are treated even better. What term below best describes this situation? a. Visionary leadership b. Emotional intelligence c. Corporate culture d. Theory X environment e. Expectancy theory
c. Corporate culture
Which of the following is the BEST example of an employee in a flow state? a. Gloria finds her job tasks more challenging than she expected, which often leads her to frustration b. Pedro finds his job tasks much simpler than he expected, which sometimes leads to boredom c. Diana feels in control of her job situation, which often leads to her producing her best work d. Yuki feels her job is adequately challenging but does not make the best use of her skills e. Don finishes his assignments quickly, as they are not challenging enough to require much effort
c. Diana feels in control of her job situation, which often leads to her producing her best work
Marianne is the payroll manager at Johnson Manufacturing. She wants to upgrade the department's accounting systems. To whom should she send her request for an upgrade? a. The IT department's Help Desk b. Vice President of Marketing c. Director of Management Information Systems d. Vice President of Operations e. Director of Human Resources
c. Director of Management Information Systems
The country of Kappa sells pizza for $1.00 each within its borders. But Kappa exports pizzas at a price of $0.30. This is an example of ________. a. An embargo b. Cheap foreign labor c. Dumping d. An administrative trade barrier e. A local content requirement
c. Dumping
Which of the following companies, formerly in the top 25 of Fortune magazine's 100 Best Companies to Work For, is no longer in business as the result of flagrant legal and ethical violations? a. Verizon b. Exxon-Mobil c. Enron d. Archer Daniels Midland e. British Petroleum
c. Enron
Which statement BEST describes why a successful entrepreneur needs to be flexible =? a. Starting a new business often leads to envy in wider business community b. People with whom entrepreneurs work are often opinionated and rigid c. Entrepreneurial ventures involve risky situations and unexpected events d. Initial business revenues tend to be low and may remain low for several years e. Many new businesses suffer from a lack of organization
c. Entrepreneurial ventures involve risky situations and unexpected events
Rebecca has been operating a pet grooming business for several years and has already maxed out her personal credit and savings. She has designed a device that will make the pet grooming process more efficient but needs about $125,000 to take the idea further and perhaps sell it to other pet groomers. Which is the most likely source of financing that Rebecca could use? a. Credit cards b. Line of credit c. Funds from an angel investor d. Venture capital financing
c. Funds from an angel investor
Laurie is an independent thinker and enjoys change. She also values her family life over her work life. Laurie is most likely from which generation? a. Silent b. Boomer c. Gen-X d. Millennial e. Lost
c. Gen-X
_____ refers to the shift toward a more integrated and interdependent world economy. a. Forward integration b. Mass customization c. Globalization d. Commercialization e. Vertical integration
c. Globalization
Which of the following is not an example of a product line length? a. Diet Coke, Cherry Coke, and Classic Coke b. Quaker Instant Oatmeal, Quaker Oatmeal Squares, and Quaker Toasted Oats c. Honda Civic, Honda lawn mower, and Honda marine engine d. Crest 3D White toothpaste, Crest Baking Soda & Peroxide toothpaste, and Crest Pro-Health Clinical Gum protection toothpaste
c. Honda Civic, Honda lawn mower, and Honda marine engine
Which of the following is contributing to the acceleration of globalization? a. The dominance of the U.S economic system b. A shrinking role for developing nations c. Increasing Democratization d. A rise in the number of non-U.S small, local businesses e. Restricting the amount of foreign direct investment
c. Increasing Democratization
Hannah is the lead engineer on an important project for the company. She believes that if she brings in the project on time and under budget, she'll be rewarded with a promotion. However, if the project is late or exceeds the budgetary restraints, she will be either demoted or fired. What is this belief called? a. Belonging b. Self esteem c. Instrumentality d. Self-actualization e. Valence
c. Instrumentality
All of the following statements about a corporation are true EXCEPT? a. It pays taxes on profits (if it is a for-profit). b. It can be sued. c. It is dissolved when the owner dies. d. It can own property. e. It is a separate entity from its owners.
c. It is dissolved when the owner dies.
Which of the following is not a characteristic of a small business? a. They generally have between 500 and 1,000 employees b. On average, the annual is no more than $7 million c. It is independently owned and operated d. It is not considered a dominant player in its industry
c. It is independently owned and operated
_____________ is the process of working with people and resources to accomplish the goals of an organization. a. Human resources b. Organization c. Management d. Intellectualizing e. Strategizing
c. Management
Which of the following statements is most likely to be true of outsourcing? a. Dispersing value-creation activities through outsourcing tends to increase the costs requires to develop a product offering. b. In today's world, outsourcing efforts are primarily confined to manufacturing activities, and do not include service activities. c. Outsourcing production to foreign countries increases the chance for companies to gain significant orders for their products from those countries. d. Outsourcing always increases the time required to develop a product, and allows no manufacturing flexibility. e. A multinational company cannot customize its products for local markets of different countries if it outsources its production activities.
c. Outsourcing production to foreign countries increases the chance for companies to gain significant orders for their products from those countries.
Russ's role within the organization is envisioning the future of the company's products and devising the strategies to make those visions a reality. Which function of management would best reflect these activities? a. Controlling b. Leading c. Planning d. Divesting e. Organizing
c. Planning
Which of the following best describes a horizontal organization? a. Power is centralized, and many layers of managers exist. b. Every employee directly reports to a supervisor. c. Power is distributed among employees. There are few managers and many empowered employees. d. There are no managers in the company. Rank and file employees make all business decisions. e. There are many layers of management, and employees are low-skilled and disempowered.
c. Power is distributed among employees. There are few managers and many empowered employees.
Market segmentation based on lifestyles, personality traits, motives, and values is called a. Geographic segmentation b. Demographic segmentation c. Psychographic segmentation d. Behavioral segmentation
c. Psychographic segmentation
A U.S company exports products to Russia. The prices of the U.S products in Russia are going up because the value of the dollar has ___________ against Russia's currency. a. Failing b. Equalized c. Risen d. Stabilized
c. Risen
Leslie is excited to begin a personal shopping business. She is planning to have employees and is concerned about losing personal assets should something happen to the business. She would like to focus on profits and building a business but she does not want her business to pay its own taxes. What ownership structure is Leslie's best choice? a. sole proprietor b. C corporation c. S corporation d. cooperative e. limited partnership
c. S corporation
A business can create a competitive advantage by doing all of the following EXCEPT a. Investing in cutting-edge technology b. Accessing cheap raw materials c. Shifting funding away from worker training in order to increase profits d. Purchasing state of the art equipment e. Promoting innovation throughout their organization
c. Shifting funding away from worker training in order to increase profits
_____ companies provide valuable services to _____ companies by acting as sales agents for their products. a. Entrepreneurial / corporate b. Large / small c. Small / large d. Wholesale / retail
c. Small / large
InfoTech offers its employees long-term employment with a focus on individual responsibility. As a result, its workers are loyal to the organization, are highly productive, and have strong morale. The management style InfoTech most likely is applying is __________. a. Theory X b. Theory Y c. Theory Z d. expectancy theory e. strength-based management
c. Theory Z
Which of the following statements is true regarding the globalization of markets? a. As a result of the globalization of markets, tastes and preferences of consumers in different nations are beginning to differ more. b. By offering the same basic product worldwide, firms fail to create a global market. c. There still exist significant differences among national markets along many relevant dimensions, including distribution channels, culturally embedded value systems, and legal regulations. d. The most global of markets are not typically markets for industrial goods and materials, but markets for consumer products. e. A company has to be the size of a multinational giant, such as Citigroup or Coca-Cola, to facilitate, and benefit from, the globalization of markets.
c. There still exist significant differences among national markets along many relevant dimensions, including distribution channels, culturally embedded value systems, and legal regulations.
Carla wants to start a new software company, but she lives in a remote community where few skilled software programmers live. Which of the following is the BEST cost-effective strategy for building her workforce? a. Produce only software she can create herself b. Offer free computer programming training programs to the local workforce c. Use the Internet and other technologies to hire remote employees who want to telecommute d. Wait until more software programmers move to the area e. Relocate to an urban area where there are many software programmers
c. Use the Internet and other technologies to hire remote employees who want to telecommute
Ethical sourcing means that a. people should make ethical decisions based on a particular situation b. there is one accepted source for guiding ethical decision making c. a company follows accepted conduct when acquiring raw materials from suppliers d. companies will not work with international suppliers
c. a company follows accepted conduct when acquiring raw materials from suppliers
If you were a venture capitalist, which of the following start-up businesses would you be most likely to fund? a. a Domino's Pizza franchisee b. a modern art gallery within a shopping center c. a producer of unique iPhone applications d. a private accountant's office e. a high-end coffee bar
c. a producer of unique iPhone applications
In terms of Herzberg's motivator-hygiene theory, all of the following would likely be considered motivator factors EXCEPT _______. a. promotion b. a sense of responsibility c. a safe working environment d. recognition e. job growth
c. a safe working environment
Which of the following is an internal examination by a company to measure its performance in relation to corporate social responsibility? a. Fortune's list of most admired companies b. a published report from Boston College's Center for Corporate Citizenship c. a social audit d. the scores the Calvert Investment Company assigns to companies e. a code of ethics
c. a social audit
In business planning, what is the main course of action created by top-level managers? a. a financial analysis b. a marketing plan c. a strategic plan d. a SWOT analysis e. a mission statement
c. a strategic plan
If the United States has the ability to produce more steel than any other country in the world, the United States has a(n)________ advantage in steel production. a. relative b. globalized c. absolute d. comparative e. artificial competitive
c. absolute
Barney is an HR manager and would like to see a more diversified workforce at his company. He decides the best way to do this is to follow a plan that requires the company to employ a certain number of minorities and women. This plan is otherwise known as ________. a. employment at will b. workforce profiling c. affirmative action d. diversity training e. diverse affirmation
c. affirmative action
___________ occurs when there are few sellers in a given market and each seller has a fairly large share of that market. a. monopolistic competition b. a monopoly c. an oligopoly d. perfect competition e. a duopoly
c. an oligopoly
An example of currency __________ would be if the value of the U.S dollar rises against the Malagasy ariary (the currency of Madagascar). a. internalization b. globalization c. appreciation d. depreciation e. exchange
c. appreciation
Janet is a human resource manager for a larger consumer products company. She has a great many job responsibilities. Which of the following is most likely NOT an aspect of her job? a. employee evaluations b. training and motivating c. asset management d. staffing needs e. benefits
c. asset management
When businesses hire celebrities to endorse their products and connect their brands with positive attributes, they are focusing on enhancing their brand a. loyalty b. awareness c. association d. extension
c. association
A mixed economy is one in which _________. a. the government or other centralized group determines and controls all resources and means of production b. there is no government intervention whatsoever in industry c. both individuals and government control resources and determine production methods d. both resources and means of production are extremely limited and generally confined to agricultural produce e. either individuals or private firms, but not both, control resources and determine production methods
c. both individuals and government control resources and determine production methods
Rashid is starting a consulting business. He doesn't want to rent an office right now, but needs a receptionist, a place to meet clients, and other aspects of an office. A good solution for Rashid to consider would be a(n) a. mentoring group b. advisory board c. business incubator d. entrepreneurial team
c. business incubator
The __________ of a company is responsible for review, analysis, and reporting of a firm's financial data, including preparing budgets and monitoring its expenditures and costs. a. chief operations officer b. chief executive officer c. chief financial officer d. chief monetary officer e. chief controller of finance
c. chief financial officer
The Calvert Company assigns companies scores based on their performance in which of the following categories? a. freedom of information b. transparency c. community relations d. truth in advertising e. consumer privacy
c. community relations
Socially responsible investing(SRI) is defined as investing only in companies that have met a certain standard of ____________. a. social acceptability b. global impact c. corporate social responsibility d. financial transparency e. social media usage
c. corporate social responsibility
The most important step in the process of starting a business is _____ a. generating a mission statement b. getting financing c. creating a business plan d. assembling a team of managers
c. creating a business plan
A manufacturer of yachts sets its prices high above its competitors. This is an example of the pricing objective of ________. a. achieving social objectives b. cutting costs to survive c. creating an image d. building traffic e. maximizing sales
c. creating an image
Hilde's company wants to develop an understanding of the demographics of people purchasing its new product. The company wants to target its marketing at this demographic of people. The marketing department has used a database management system to identify the characteristics of buyers. Which of the following will be MOST useful for identifying the appropriate demographic group at which to target marketing? a. data consolidation b. data brainstorming c. data mining d. data marting e. data warehousing
c. data mining
Prices become higher when a unique and highly desirable item is auctioned because the ________. a. supply and demand are equal b. supply is higher than the demand c. demand is higher than the supply d. demand is lower than the supply e. supply and demand are kept unknown
c. demand is higher than the supply `
Which of the following BEST demonstrates that different countries have different attitudes toward work? a. different religious traditions b. different aesthetic norms c. different vacation policies d. different language standards e. different cultural customs
c. different vacation policies
Jenny and Rose are hairstylists that have decided to open their own salon by starting a general partnership. The first step to ensuring a successful partnership would be to ________. a. guarantee that they each have 25 clients to bring into the partnership b. submit the partnership formation fee to the state c. draw up a partnership agreement d. submit the limited liability forms before they see clients e. arrange for the special tax filing considerations a partnership requires
c. draw up a partnership agreement
All of the following are reasons business owners consider using a corporation structure of ownership EXCEPT___________. a. the appearance of stability and legitimacy b. protection from significant loss of personal assets c. ease of forming and setting up the structure d. eased ability of raising capital e. ease of transferring ownership
c. ease of forming and setting up the structure
The nation of South Pi is experiencing rapid increases in business activity, but still lacks sufficient infrastructure and modern communication systems. Which challenge to conducting international business is the PRIMARY one faced by exporters to Pi? a. nonconvertible currency b. government economic policies c. economic growth and development d. socioeconomic factors e. cultural behaviors of a community
c. economic growth and development
The various resources used to create a company's goods and services are collectively referred to as__________. a. supplies b. raw materials c. factors of production d. inventory e. intellectual property
c. factors of production
Eumin is highly involved in the project on which he's working and gets grumpy when interrupted. Eumin is in a state of __________ because he is consumed by the job he's working on. a. chi b. self-actualization c. flow d. valence e. vision
c. flow
Amy is the founder of a small IT firm that specializes in social networking applications. She meets weekly with the members of her development team to solicit their ideas, address any problems they are having, and provide motivation and encouragement. Amy is demonstrating which characteristic of a successful entrepreneur? a. self-directed b. risk-taking c. leadership and communication skills d. innovative e. flexible
c. leadership and communication skills
Situational ethics encourages people to ________. a. evaluate how they can best meet their individual needs in any particular situation b. apply the basic values shared by all major religious traditions to a variety of situations c. make ethical decisions based upon the circumstances of a particular experience, not upon fixed laws d. have no interest in the moral consequences of their actions e. create a personal code of ethics based on their family background
c. make ethical decisions based upon the circumstances of a particular experience, not upon fixed laws
If you're purchasing an existing business or a franchise, banks may offer lines of credit to help you___________. a. create a business plan b. avoid borrowing from a savings and loan association c. make payroll when business is slow d. find an angel investor e. repay loans from family and friends
c. make payroll when business is slow
Rashan has been working as a pharmacist at a large drug store chain. He would like to open his own small pharmacy but is not sure if he could be successful given the predominance of large competitors. What part of his business plan would best address his concern? a. company information b. risk analysis c. marketing plan d. operational plan e. mission statement
c. marketing plan
In which type of business would you most likely find a Theory X style of management? a. District Attorney's office b. social think tank c. mass manufacturing company d. long-term care hospital e. public relations firm
c. mass manufacturing company
The controlling function of management is best described as a. keeping employees in line b. watching employees carefully by monitoring their e-mail and phone usage c. measuring the firm's performance to make sure the company's plans are on track d. All of the above
c. measuring the firm's performance to make sure the company's plans are on track
Celeste is interested in studying the effects that natural disasters have on the value of goods and services in the affected areas. Her area of study should be ________. a. macroeconomics b. sustainability c. microeconomics d. sociology e. marketing
c. microeconomics
Division managers who are responsible for financial, marketing, sales, operations, or IT divisions and team leaders who are responsible for a group of employees are _____________. a. top managers b. first-line managers c. middle managers d. senior managers e. executive board members
c. middle managers
McDonald's selling seaweed-flavored fries in Asian countries is an example of a company pursuing a ___________ strategy. a. transnational b. global c. multidomestic d. domestic e. national
c. multidomestic
When Boeing recently produced its latest airplane, the Boeing 787, parts of the plane were manufactured by a firm in Italy, other parts were manufactured by a firm in Wichita, Kansas, and all of the elements of the plane were shipped to Everett, Washington, where the final assembly was completed. This is an example of a ________ organization. a. vertical b. horizontal c. network d. team e. cooperative
c. network
Social media monitoring is best described as a. planning events where the sales force mingles with potential clients b. regulating the use of e-mail and messaging in the workplace c. staying aware of the messages posted about your products in cyberspace d. eavesdropping on personal communications
c. staying aware of the messages posted about your products in cyberspace
Once a company's vision and mission statement have been articulated, management must assess a company's SWOT, which stands for ________. a. strengths, weaknesses, operations, and targets b. strengths, world view, obligations, and tasks c. strengths, weaknesses, opportunities, and threats d. strengths, weaknesses, organization, and threats e. strengths, world view, organization, and targets
c. strengths, weaknesses, opportunities, and threats
The amount of a product or service that is available for purchase at any given time is called ________. a. demand b. shortage c. supply d. surplus e. commodity
c. supply
If the value of the nation of Nu's exports is greater than the value of its imports, Nu has a trade___________. a. balance b. currency c. surplus d. deficit e. equilibrium
c. surplus
The fact that modern, sophisticated manufacturing innovations have enabled many firms to more easily customize their products and to offer them at drastically reduced prices to satisfy the varying tastes of targeted customers represents the impact of the __________ on the marketing of products. a. social and cultural environment b. competitive environment c. technological environment d. 4 P's e. economic environment
c. technological environment
Melinda is a store owner who buys items online to sell in her shop. Which of the following factors of production is BEST illustrated in Melinda's use of the Internet? a. entrepreneurs b. labor c. technology d. capital e. natural resources
c. technology
Joseph took a class in macroeconomics, which means that he was studying the behavior of ________. a. people with limited resources b. individual businesses c. the overall economy d. fortune 500 companies e. corporate executives
c. the overall economy
When Gary Erickson, the founder of Clif Bar, Inc., was about to accept an offer of $120 million for the company, he changed his mind because ________. a. the offer was too high b. the offer was too low c. the purchasers were planning to move Clif Bar out of state and lay off all current employees d. the purchasers were not intending to use renewable energy as the main power source for the company e. the purchasers were not going to use exclusively organic ingredients to manufacture the energy bars
c. the purchasers were planning to move Clif Bar out of state and lay off all current employees
Wayland wants to open up a deli but doesn't want the risk of opening one up from scratch. He knows about a deli that's for sale, but the owner has put too high a value on the business's goodwill. Goodwill is a. the value of the leftover products the deli gives to the local food pantry b. the value of the donations the deli gives to charity c. the value of the business's reputation with the current owner d. All of the above
c. the value of the business's reputation with the current owner
If you are planning to start a new business, how long should you realistically expect it to take for your business to earn a profit? a. six to twelve months b. one to two years c. three to five years d. five to ten years e. more than ten years
c. three to five years
When needs are satisfied, __________ is created. a. promotion b. market segmentation c. utility d. differentiation e. demographics
c. utility
According to Vroom's model, which psychological force answers the question, "How great a reward will there be if my performance is exemplary? a. expectancy b. instrumentality c. valence d. resonance e. enthusiasm
c. valence
A vision statement identifies _____________. a. the current description of an organization's purpose, basic goals, and philosophies b. the latest accomplishments and innovations of a company c. what the business wants to be in the future d. the way the company would operate if profit were not an issue e. the history of the business and its founder(s)
c. what the business wants to be in the future
Teams improve creativity a. when the phenomenon groupthink sets in b. no matter what the makeup of the team c. when best practices for selecting the team members and roles are followed d. when individuals work with others who are just like them
c. when best practices for selecting the team members and roles are followed
The majority of small businesses in the USA are owned by ____. a. white females b. black females c. white males d. black males
c. white males
If you are developing your own personal ethical system, which of the following would NOT be appropriate to include in your evaluation? a. your belief orgins b. your behavior c. your age d. your beliefs e. your base character
c. your age
Business intelligence software
can further assist managers by helping them analyze the financial state of the firm and answer other questions
Raising capital of an S corporation
capital can be raised through sale of stock and debt; only common stock can be issued
Raising capital of a corporation
capital is raised through sale of stock and debt issue
Cheap foreign labor argument
centers on the sometimes significantly lower wages paid to workers of foreign companies
examples of government decisions
changing interest rates
What are factors that affect demand and supply of a nation's currency?
changing interest rates, tax rates, and inflation rates
base character
characteristics others would use to describe you
Hidden fees
charges not included in the advertised price
M-1
coins and bills, traveler's checks, and checking accounts (currency)
Database management systems
collections of data that organize the data and allow simple analysis and reporting
Network organization
collections of independent single-function firms that collaborate on a product/service
What are examples of a planned economic system?
communism and socialism
Free trade areas
compacts abolishing trade barriers among member countries
Sarbones-Oxley Act
companies must report all finances accurately
Data brokers
companies that gather and sell Big Data
Recruitment consultants (headhunters)
conduct more specialized searches for management, they approach individuals with good reputations instead of waiting for people looking for jobs to contact them
Total product offer
consists of all the benefits associated with a good, service, or idea that impacts a consumer's purchasing decision
Executive information system (EIS)
consolidate and summarize the transactions within an organization
Empowering customer
contact employees to develop solutions to customer concerns creates a competitive advantage
Electronic Performance Support System (EPSS)
contain online modules employees can access when they need training instead of attending long, formal sessions disconnected from their daily work
Teamworker
cooperative and diplomatic
A corporation can behave in a socially responsible way by a. having strong policies b. acting to reduce the negative impact a company has on the environment c. being truthful with consumers in its market d. All of the above
d. All of the above
A well-defined corporate vision benefits a company by a. keeping managers focused on strategies that are consistent with the company's goals b. illustrating the company's values to investors c. inspiring employees d. All of the above
d. All of the above
Human resource management requires expertise in a. managing staffing needs as a company evolves b. training and evaluating employees c. compensation, disciplinary actions, and promotion of employees d. All of the above
d. All of the above
Technology has forced businesses to focus on security issues like a. phishing b. adware and spyware c. disruption by hackers d. All of the above
d. All of the above
Types of training required in some careers include a. an on-the-job mentor b. time spent as an apprentice c. programmed learning d. All of the above
d. All of the above
Which is a key trait of an entrepreneur? a. Flexibility b. Risk Taking c. Creative Thinking d. All of the above
d. All of the above
Which of the following are benefits that companies experience by employing a diverse workforce? a. Cultural differences result in alternative perspectives and lead to better problem-solving b. They fulfill expected affirmative action standards c. Companies become more competitive in the global marketplace d. All of the above
d. All of the above
Which of the following factors commonly leads to the failure of a small business? a. Not enough planning b. Too much accumulated debt c. Unanticipated personal sacrifices d. All of the above
d. All of the above
Which of the following represents a shift from the four P's to the four C's of marketing? a. Considering the complete cost of a product to a consumer b. Making the product convenient to buy c. Focusing on the customer's wants and needs d. All of the above
d. All of the above
Omar and Sam are physical therapists who work together. Their office is on the first floor of a building Omar owns. They need protection of their personal assets. Which business structure would best suit their company? a. A general partnership b. A sole proprietorship c. A not-for-profit organization d. An LLC
d. An LLC
Which of the following is not a characteristic of an entrepreneur? a. Is confident in their innovation or business idea b. Is willing to work under a certain degree of uncertainty c. Has the flexibility to adjust to changing situations d. Avoids risk
d. Avoids risk
Camille, an electronics engineer, is a member of a new product development team with members of mechanical engineering, quality assurance, manufacturing, marketing, and accounting. On what type of team does Camille work? a. A telecommuting team b. A static team c. A virtual team d. A cross-functional team e. A strength-based team
d. A cross-functional team
Business-to-business transactions include a. brokering sites b. social networking sites c. specialized industry portals d. Both a and c
d. Both a and c
_________ support start-up businesses by offering resources such as administrative and technical support and business networking. a. Advisory boards b. Virtual assistants c. Partners d. Business incubators e. Entrepreneurs
d. Business incubators
If the U.S has the ability to produce more steel than any other country in the world, the U.S has an _____________ advantage in steel production. a. Absolute b. Artificial Competitive c. Globalized d. Comparative e. Relative
d. Comparative
__________ is one of the countries closest to having a planned economy, and _________ is the one of the countries closest to having a market economy. a. Russia, Italy b. India, Norway c. Russia, Norway d. Cuba, Singapore e. Canada, China
d. Cuba, Singapore
Nina's furniture store has had a successful year and made a significant profit. Which of the following actions using Nina's store profits would BEST increase productivity? a. Create an emergency fund b. Service her community through social and educational means. c. Hire more staff d. Develop a website that would enable customers to shop and place orders online e. Pay for utilities and inventory in advance
d. Develop a website that would enable customers to shop and place orders online
_____ is a decrease in the rate of inflation. a. Deflation b. Depression c. Inflation d. Disinflation e. Deflection
d. Disinflation
Jim wants to get an A on the next test, so he blocks out the entire evening before the test to study. He's convinced that his effort will lead to a good score. Which element of expectancy theory does this reflect? a. Affiliation b. Instrumentality c. Self-actualization d. Expectancy e. Valence
d. Expectancy
Ydel knows that if she exceeds her sales quota this month, she will earn a substantial bonus. What type of motivator is this? a. Altruistic b. Intrinsic c. Expectancy d. Extrinsic e. Emotional
d. Extrinsic
Sally started her new business venture five years ago. The business now operates in three locations, and her sales have increased by 25% every year, which is exactly what Sally had in mind. Which type of entrepreneur best describes Sally? a. Social entrepreneur b. Lifestyle entrepreneur c. Growth entrepreneur d. Gazelle
d. Gazelle
A team of managers is sitting around a table discussing ideas for how to solve a complex business problem. The head manager suggests a course of action, and most of the team agrees completely without any dissenting viewpoints. Others have objections but do not speak up and share them with the team. What is this an example of? a. The Hawthorne effect b. Theory X c. Visionary leadership d. Groupthink e. Strength-based management
d. Groupthink
Malik is a manager who is very good at connecting with his people. He is concerned about their feelings and well-being and strives to help his employees to maintain a positive attitude. What leadership trait does Malik possess in this example? a. He possesses a high level of autocratic tendencies. b. He is a visionary leader. c. He has a high level of technical intellect. d. He has a high level of emotional intelligence. e. He has a high level of self-actualization.
d. He has a high level of emotional intelligence.
As a result of their influence on the quantity, variety, and quality of products, trade barriers ________ domestic consumers. a. Give an absolute advantage to b. Help c. Have no effect on d. Hurt e. Appease
d. Hurt
Which of these characteristics is NOT applicable to a multinational company? a. It must comply with the laws of the countries in which it operates b. It may adapt its operations to fit the cultures of the countries in which it operates c. It provides goods or services to international consumers d. Its employees must speak multiple languages e. It may serve only one country but have suppliers or facilities in other countries
d. Its employees must speak multiple languages
ArmiLiza, a popular United States-based brand of handbags, has built a second factory in Mexico. The majority of the new factory's employees are Mexican citizens or Honduran immigrants. On which country's gross domestic product will the second factory's goods be counted? a. They will be split between the United States and Mexico b. Honduras c. the United States d. Mexico e. They will be split among all three countries
d. Mexico
Maxwell is a freshman in college and believes in his self-worth and value. He has high expectations for his achievement in his eventual career. Maxwell spends a good deal of money each month, often making "copurchases" with his parents. Maxwell is most likely from which generation? a. Silent b. Boomer c. Gen-X d. Millennial e. The Greatest
d. Millennial
Employees can be sure their behavior out of the office a. has no impact on stockholders b. cannot impact their career if they blog under a fake name c. matters to employers only during the hours they are officially telecommuting d. None of the above
d. None of the above
Hackers can infiltrate systems a. only if they use cookie files to store information b. if the systems are isolated as a single corporate extranet c. All of the above d. None of the above
d. None of the above
A free trade area that includes Canada and the United States, but not Japan, is the______________. a. Asia-Pacific Economic Cooperation (APEC) b. Association of Southeast Asian Nations (ASEAN) c. European Union (EU) d. North American Free Trade Agreement (NAFTA) e. MERCOSUR
d. North American Free Trade Agreement (NAFTA)
Tenita Reynolds opened a small community bookstore several years ago. When a new book comes out, Tenitia e-mails clients she thinks will enjoy it based on their past purchases. Which part of the marketing process do Tenitia's actions reflect? a. Conducting market research b. Identifying a market need c. Implementing the marketing mix d. Nurturing customer relationships
d. Nurturing customer relationships
A term that describes the movement of production away from a domestic production site to a foreign location is ____________ outsourcing. a. Domestic b. In-house c. Production d. Offshore e. Onshore
d. Offshore
Which pricing strategy sets prices just below a whole number to give the appearance of a lower price? a. Predatory pricing b. Price discrimination c. Target costing d. Psychological pricing
d. Psychological pricing
Ben is performing a(n) __________ to determine what opportunities and threats exist for his business. a. strategy session b. tactical planning exercise c. risk assessment d. SWOT analysis e. operational plan
d. SWOT analysis
Aneal is a very successful employee in the IT department. His supervisor wishes to recognize him with a promotion to give him more responsibilities, but knows Aneal does not want to manage other employees. What option does Aneal's supervisor have? a. She does not have any options other than allowing Aneal to remain his current job until he changes his mind about supervising b. She can force Aneal to take on a supervisory role and see if he changes his mind c. She can lower Aneal's level of responsibility in his current job until Aneal is so miserable he'll do anything for a change d. She can offer Aneal a position on an individual contributor career track and the title of senior IT specialist e. She can transfer Aneal to another branch office so at least he'll have new coworkers
d. She can offer Aneal a position on an individual contributor career track and the title of senior IT specialist
U.S. farmers export canned sweet corn to Germany, which lowers the price to a German consumer by a few cents. The benefits to Germany of this international trade deal are ________. a. nonexistent b. Concentrated in the hands of a few German Farmers c. Borne solely by the government d. Spread out among millions of German consumers e. Immeasurable
d. Spread out among millions of German consumers
If the nation of Epsilon places a tax on all grapes imported from the nation of Zeta, Epsilon has imposed an__________. a. Subsidy b. Quota c. Embargo d. Tariff e. Foreign content requirement
d. Tariff
An engineering team has members from Egypt, Malaysia, Australia, Argentina, and the US. They communicate by email and videoconferencing. The collaborative work of this globalized team is made easier mainly because of___________. a. Declines in trade barriers b. A shrinking role for developing nations c. Increases in quotas d. Technological innovation
d. Technological innovation
Which of the following is NOT an example of how not-for-profit organizations use marketing? a. The Sierra Club is holding a masked costume ball for Halloween in San Francisco b. A museum conducts a citywide mailing to attract new membership c. The Ad Council runs a campaign to prevent drunk driving d. The Red Cross is investigating the use of alcohol-based drugs for children's diseases e. A Belgium cultural society wants to inform American tourists that French fries were invented there
d. The Red Cross is investigating the use of alcohol-based drugs for children's diseases
Which of the following is not an advantage of a C corporation? a. The owner's personal assets are protected b. The owner can raise greater sources of funds by selling shares of ownership c. The corporation can continue to exist even if the owner leaves the business d. There is little paperwork involved
d. There is little paperwork involved
Which of the following is NOT a problem typically encountered with performance appraisals? a. There are often difficulties objectively appraising performance, because appraisers often do not see all aspects of an employee's performance b. Often, it is not until the next performance appraisal that it is recognized that recommended training and development did not occur c. There is often no built-in mechanism for following up on suggestions for change or development d. There is much administrative pressure due to the high frequency of an individual's performance appraisals in one year e. There can be discomfort when it is necessary to make negative comments during this review process
d. There is much administrative pressure due to the high frequency of an individual's performance appraisals in one year
What is the most common reason small business owners neglect to seek outside help when starting a business? a. They assume that no one outside their family would be interested in helping them. b. They believe that professional advice is necessary c. They believe that it is exclusively up to the business owner to make a small business succeed d. They think that they cannot afford professional advice e. They think outsiders would not act in the best interests of their business
d. They think that they cannot afford professional advice
Which of the following best describes entrepreneurs? a. They're retired businesspeople working on a voluntary basis b. They're usually onetime managers who open up a business for the sole purpose of providing an income for themselves and their family c. None of these d. They're risk takers who can adjust to changing situations
d. They're risk takers who can adjust to changing situations
American Express competes around the world by offering a customized product while simultaneously selling at the lowest possible price. The company is using a ________ strategy. a. National b. Multidomestic c. Domestic d. Transnational e. Global
d. Transnational
When Mu Manufacturing Co. exports their technological know-how in exchange for a fee, they are entering foreign markets through a ________. a. Strategic alliance b. Wholly-Owned subsidiary c. Licensing agreement d. Turnkey Project e. Franchise
d. Turnkey Project
One example of complementary good is ___________. a. cheese and crackers b. cable television and Internet service c. dog food and a dog bowl d. a cell phone and wireless phone service e. magazines and newspapers
d. a cell phone and wireless phone service
Compared to the C corporation, the limited liability company is an attractive form of business ownership because ________. a. a limited liability company may be more expensive to form but it has a longer life than a C corporation b. a limited liability company allows only one owner, whereas a C corporation requires over 100 owners c. a limited liability company provides owners with protection of their personal assets; whereas C corporation owner's personal assets are at risk d. a limited liability company does not require the firm to hold annual meetings and it can avoid double taxation e. a limited liability company issues stock, while in a C corporation each member's ownership is determined by the value of their capital account
d. a limited liability company does not require the firm to hold annual meetings and it can avoid double taxation
Which transaction BEST describes bartering? a. an exchange of goods for currency, in which the price of something is determined by establishing its value against an underlying commodity b. an exchange of currency without an exchange of goods, in which the price of something is determined by what sellers demand c. a transfer of goods without an exchange of currency, in which the price of something is determined by the seller, and the buyer agrees to pay at a later time d. an exchange of goods without an exchange of currency, in which the price of something is determined by the needs and resources of each person involved in the exchange e. an exchange of goods for currency, in which the price of something is determined by what buyers are willing to pay
d. an exchange of goods without an exchange of currency, in which the price of something is determined by the needs and resources of each person involved in the exchange
Siobhan Clark just bought a Philadelphia Phillies jersey with player Cole Hamel's name and number on the back, as well as a hat and jacket that display the Phillies logo. The type of branding strategy used for these products is a. generic branding b. manufacturer's branding c. private branding d. brand licensing
d. brand licensing
Which of the following is NOT a disadvantage of franchising? a. lack of control b. workload c. competition d. brand recognition e. royalty fees
d. brand recognition
Selling the right price_________. a. does not impact how consumers view a product b. involves setting a specific pricing objective after establishing the price point c. plays no role in determining whether consumers will purchase a product d. can help differentiate the product from the competition e. means simply calculating the cost of production and tacking on a markup for profit
d. can help differentiate the product from the competition
Ethnocentrism is a belief that a. ethics are central to doing well in business b. the value of commerce changes in different societies c. all cultures should be respected equally d. can lead to conflict when conducting business globally
d. can lead to conflict when conducting business globally
Managing the money that comes in and goes out of a business means managing _____. a. the bottom line b. debits and credits c. equity d. cash flow
d. cash flow
The globalization of markets and the globalization of production means that a. people are no longer in control of their own lives b. we are all connected by the Web c. companies can take one product to international markets without have to adapt it d. companies design products for global markets and can produce them offshore
d. companies design products for global markets and can produce them offshore
Pilar's daughter wants a Betty the Builder doll for Christmas. When Pilar gets to the toy store they are sold out, so she goes to another store. There she is told that they have a limited quantity, which will go on special sale at 6am the next morning-and that she'd better get in line early. This is an example of which of the following determinants of demand? a. complementary goods b. population changes c. substitute goods d. consumer preference e. changes in income level
d. consumer preference
If a computer virus spreads rapidly through a company's computer system and threatens to shut down all internal and external lines of communication, the company will likely put a(n)________ into effect. a. strategic plan b. tactical plan c. healthcare plan d. contingency plan e. operational plan
d. contingency plan
Doreen is a marketing instructor at the branch office of a local college. When she cannot teach one of her evening classes, she hires her friend Patrick to fill in for her. In this case, Patrick is a(n)___________. a. consultant b. independent contractor c. job sharer d. contingent worker e. flextime worker
d. contingent worker
What is a valid explanation as to why some nations retain nonconvertible currency? a. to avoid having to countertrade b. increased academic achievement c. desire to work with other countries d. fear of capital flight e. reliance on foreign loans
d. fear of capital flight
Full owners of an unincorporated business who share equal amounts of risk are __________. a. full partners b. limited partners c. investors d. general partners e. master partners
d. general partners
The _____ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor, energy, land, and capital. a. globalization of markets b. augmentation of products c. amplification of production d. globalization of production e. capitalization of markets
d. globalization of production
The physical products that a business offers are called_________. a. services b. assets c. intangible d. goods e. devices
d. goods
The Federal Reserve System (the Fed) manages the country's money supply through its monetary policy to control inflation by doing all of the following EXCEPT________. a. buying and selling government securities b. trading in foreign exchange markets c. changing in certain interest rates d. increasing taxes e. manipulating reserve requirements
d. increasing taxes
A free market economy is one in which __________. a. the government or other centralized group determines what to produce b. individuals determine what to produce with some level of government involvement c. the government controls healthcare while privately owned businesses operate in other market sectors d. individuals and private firms make decisions based on consumer needs and wants e. privately owned, profit-seeking enterprises are converted to government-owned production and services
d. individuals and private firms make decisions based on consumer needs and wants
Shauna is a manager renowned for her __________ within the organization. She is incredibly talented at being able to connect with people and is well-trusted by her employees. a. conceptual skills b. intellectual skills c. tactical skills d. interpersonal skills e. technical skills
d. interpersonal skills
In the modern workplace, ________. a. the lines of privacy laws are becoming clearer and sharper b. only the actions of workers physically on site at the office are of concern to employers c. individuals' activity on social media is of no concern to the companies for whom they work d. less distinction is made between how you conduct yourself inside and outside the office e. employers acknowledge that they have no right to influence the behavior of telecommuting employees when they are working from home
d. less distinction is made between how you conduct yourself inside and outside the office
As a business owner, you're in charge and can decide when and where you want to work. This managerial freedom best reflects the _____ advantage of small business ownership. a. time-management b. financial c. intellectual d. lifestyle
d. lifestyle
Owners of limited liability companies are referred to as__________, while owners of a corporation are called __________. a. partners; shareholders b. shareholders; partners c. shareholders; members d. members; shareholders e. partners; members
d. members; shareholders
Galaxy Lighting is a new company creating chandeliers specifically to be used in hotel lobbies. Since its potential customers are very narrowly defined, it must undertake ________ to focus its marketing efforts. a. a search for the appropriate distribution channel b. careful analysis of statistics c. situational analysis d. niche marketing e. environmental scanning
d. niche marketing
According to moral relativism ________. a. gossiping creates a more divisive workplace b. people make decisions based on a specific situation instead of universal laws c. everyone is equal in the eye of the law d. no single view is more valid than any other e. applying the Golden Rule is more important than complex sets of moral rules
d. no single view is more valid than any other
The most significant difference between a partnership and a sole proprietorship is the ________. a. amount of liability owners b. taxation process used by owners c. number of government forms required for establishment d. number of people contributing resources e. revenue potential
d. number of people contributing resources
Which of the following BEST describes how businesses convert raw data into information? a. maintaining the representations of facts or ideas in their original form b. storing the data in a data warehouse c. asking information technology experts to review data for accuracy d. organizing the data in a way that helps make decisions e. using the prevalent automatic process
d. organizing the data in a way that helps make decisions
In Maslow's hierarchy, the need for water, food, and sleep are classified as ___________ needs. a. self-actualization b. safety c. belonging d. physiological e. esteem
d. physiological
John is an employee at a car manufacturer. Today he has come into work to find that production has stopped because the government has determined that the steel used in the cars will be better used in the manufacture of a new railway line. John doesn't mind, because although his wages are low, he gets paid whether there is any work for him to do or not. John MOST likely lives in a ________ economy. a. blended b. capitalist c. market d. planned e. mixed
d. planned
Marketing has evolved over which general eras? a. innovation, production, sales, customer relationship b. production, promotion, sales, marketing c. production, value chain, purchasing, niche, customer relationships d. production, sales, marketing, societal marketing, customer relationship e. innovation, production, sales, marketing concept, satisfaction
d. production, sales, marketing, societal marketing, customer relationship
The market mechanism benefits society by ensuring that__________. a. resources are used to increase the benefits of low-value products. b. more people will want to buy more BlackBerrys c. raw materials and labor flow into the production of goods with the lowest demand d. scarce resources are channeled into products most desired by society e. society will maintain the current standard of living
d. scarce resources are channeled into products most desired by society
William was a factory worker in the 1920s. His company trained him in the exact sequence of steps he needed to make each day so that he would work to maximize productivity. William's company was using the principles of ___________. a. uncertainty management b. management by objectives c. Theory Z management d. scientific management e. strength-based management
d. scientific management
Isaac is a franchise owner of a fast food restaurant. When another franchisee is accused of using artificial meat in its hamburgers, sales at Isaac's franchise location drop dramatically. What disadvantage of franchising is BEST demonstrated by Isaac's situation? a. workload b. poor initial training c. lack of advertising support d. sharing common problems e. competition
d. sharing common problems
A survey conducted by the Wall Street Journal indicates that _____ have a more satisfying business experience. a. top-level executives b. franchise owners c. team members d. small business owners
d. small business owners
Software that tracks your personal information and sends it to a third party without your knowledge is called ___________. a. phishing b. adware c. spam d. spyware e. PPC
d. spyware
Which of the following would LEAST likely be an indicator of a company's values and principles? a. the company's code of ethics b. the company's mission statement c. the company's record of legal compliance d. the company's marketing campaign e. the owner's behaviors and priorities
d. the company's marketing campaign
IT is a. internship technology opportunities b. company-wide investigations of office conduct c. building a networking plan for the flow and use of information d. the design and implementation of computer-based systems
d. the design and implementation of computer-based systems
When employees are motivated, a. they often take more time to be with their families b. they often move on to other companies c. net profits tend to decline d. they are more productive and creative
d. they are more productive and creative
Emma bought a tablet and a smartphone. These products are called goods because_________. a. they do a good job of satisfying a customer's needs b. they are produced in an economical offshore factory c. they can be sold either in a store or online d. they are physical or tangible products e. they are good at increasing a company's profit margin
d. they are physical or tangible products
Situational ethics was considered very controversial when it was established by Joseph Fletcher because it challenged the idea that ________. a. people make decisions based on a specific situation instead of universal laws b. most people act in their own self-interest when making decisions c. people make decisions based on a specific situation no matter what the consequences are d. universal rules exist and can be applied to every situation e. some people have no sense of right and wrong
d. universal rules exist and can be applied to every situation
Virtual teams are teams that a. are incomplete and need to be dissolved b. communicate only through face-to-face meetings c. primarily focus on technology-based projects d. work in different physical locations
d. work in different physical locations
Example of micropreneurs
dog-walking services, painters, and special-occasion cake bakers
example of monopolistic competition
dutch and starbucks
Digital Millennium Copyright Act (DMCA)
e-businesses have to comply with laws only where the companies are based
Studies show that participation in an incubation program increases the success rate of a start-up company by as much as___________ percent. a. 50 b. 60 c. 70 d. 80 e. 90
e. 90
Jim and Rhonda are owners of a local car detailing service. Jim runs the day to day operations in the business, while Rhonda primarily provided capital when the business started. What type of partnership do they have? a. A general partnership b. A restricted partnership c. An investor-centric partnership d. A full partnership e. A limited partnership
e. A limited partnership
Kyle has just accepted a job as an accountant for a large firm. He is deaf, so his employer is expected to accommodate Kyle's needs with some modified telephone equipment. These reasonable accommodations are legislated under the ________. a. Age Discrimination in Employment Act b. Fair Labor Standards Act c. Discrimination Act of 1999 d. Civil Rights Act of 1964 e. Americans with Disabilities Act
e. Americans with Disabilities Act
Which type of organization best describes a structure in which management is tasked with being accountable to employees? a. A not-for-profit organization b. A horizontal organization c. A governmental organization d. A vertical organization e. An inverted organization
e. An inverted organization
Which of the following steps would be LEAST likely to improve the culture of ethical and responsible conduct in a business? a. The mission statement can be posted throughout the workplace b. Companies can employ ongoing ethics training programs designed to boost the awareness of their employees about ethic issues c. Managers can set clear examples for the standards of behavior expected d. Orientation programs can be offered to inform new employees of ethical standards in place and conduct expected of them e. Calendars with the mission statement of the company can be printed and distributed to all the company's clients at holiday time
e. Calendars with the mission statement of the company can be printed and distributed to all the company's clients at holiday time
Chris orders a salad at a restaurant. What is the BEST definition of what he is buying? a. Chris is buying a service b. Chris is buying a service, but not a good c. Chris is buying neither a good or service d. Chris is buying a good e. Chris is buying both a good and a service
e. Chris is buying both a good and a service
Karel relishes the feeling of being able to master a new skill in the workplace, and he enjoys the attention and recognition that he gets as a result. According to Maslow's hierarchy of needs, which level of needs is Karel satisfying? a. Physiological b. Self-actualization c. Safety d. Psychological e. Esteem
e. Esteem
According to the theory of comparative advantage, if the U.S and Mexico increase their trade with each other, the two countries will experience_____________________ standards of living. a. Identical b. Rapidly decreasing c. Slightly lower d. No change in e. Higher
e. Higher
Which of the following statements about unlimited liability for the debts of a business is true? a. In a limited partnership, all partners have unlimited liability for the debts of the business, regardless of who incurred the debt. b. A sole proprietor is responsible for paying the debts of the business only to the extent of the business's assets. c. In a general partnership, each general partner has unlimited liability for the debts of the business only if that GP incurred the debt. d. A sole proprietor's home and personal assets are exempt from liability for the debts of a business. e. In a general partnership, each general partner has unlimited liability for the debts of the business, regardless of who incurred the debt.
e. In a general partnership, each general partner has unlimited liability for the debts of the business, regardless of who incurred the debt.
Which of the following statements is TRUE of a not-for-profit organization? a. It cannot operate like a business b. It pursues profits for its owner c. It does not pay expenses d. It rewards the proprietor of the organization with earned profits e. It can earn excess revenue
e. It can earn excess revenue
Hans and Franz are going to open a gym. They plan to use their own funds and jointly own and manage the gym. Their friend Arnold is also investing money in the start-up of the business, but he will not be involved in the day-to-day operations of the gym. What is the simplest form of business ownership they could use? a. Sole proprietorship b. S corporation c. General partnership d. C corporation e. Limited partnership
e. Limited partnership
________ reflect the personality of a company. a. SWOT analysis b. Strategic plans c. Balance sheets d. Sales figures e. Mission statements
e. Mission statements
Paolo is part of a group that hires the corporation's management team, helps set the corporation's policies, and authorizes the issuance of stock. What is most likely Paolo's role in the firm? a. Paolo is a middle manager. b. Paolo is a consultant. c. Paolo is a line manager. d. Paolo is the CFO. e. Paolo is on the company's Board of Directors.
e. Paolo is on the company's Board of Directors.
__________ involves tricking a person into entering sensitive personal or financial information into a form on a website or in an email, typically by convincing the person that she is dealing with a site she normally interacts with, such as her bank. a. Spam b. Spyware c. Electronic monitoring d. Adware e. Phishing
e. Phishing
An example of globalization of _______________ is Toyota opening a factory in Kentucky. a. Markets b. Promotion c. Retailing d. Selling e. Production
e. Production
Which of the following types of ownership is limited to 100 owners? a. sole proprietor b. C corporation c. general partnership d. limited liability company e. S corporation
e. S corporation
Which of the following statements about S corporations is MOST accurate? a. S corporations have unlimited liability b. S corporations can have an unlimited number of owners c. S corporation are easier to set up than sole proprietorships and partnerships d. S corporations must have fewer than 5 employees e. S corporations enable owners to avoid the problem of double taxation
e. S corporations enable owners to avoid the problem of double taxation
Brian's company is in the midst of a series of layoffs, and he worries constantly whether his job will be cut next. According to Maslow's hierarchy of needs, which level of needs does this most accurately reflect? a. Belonging needs b. Esteem needs c. Self-actualization needs d. Physiological needs e. Safety needs
e. Safety needs
The quality initiative that is statistically based, proactive, long-term and designed to look at the overall business process to prevent problems is called_______________. a. Pareto chart b. Total Quality Management c. the Control Cycle d. Performance Measurement e. Six Sigma
e. Six Sigma
Which of the following is the BEST example of how technology supports ethical conduct in hospitals? a. Technology makes it easier to monitor the conversation of patients and visitors b. Technology ensures that the correct prescriptions are prescribed to patients c. Technology eliminates the possibility of human error in most interactions between patients and staff d. Technology quickly recognizes mistakes in data entry, preventing unfortunate errors e. Technology allows employees to report their mistakes without risking disciplinary action
e. Technology allows employees to report their mistakes without risking disciplinary action
How do companies conduct a social audit? a. They submit their corporate social responsibility portfolios to third-party companies that rate and rank them against other companies b. They file reports to their stockholders and investors about proposed corporate social responsibility activities related to social work and environmental conservation c. They partner with charitable organizations that interact with the local community and employee relations on their behalf d. They use Twitter to raise money for various charitable foundations and worthy causes e. They conduct an internal systematic examination that measures and monitors the progress of the company in meetings its corporate social responsibility goals.
e. They conduct an internal systematic examination that measures and monitors the progress of the company in meetings its corporate social responsibility goals.
All of the following are true about managers EXCEPT: a. They work with people to accomplish an organization's goals. b. They help employees set and reach goals. c. Managers perform four primary functions long dash—planning, organizing, leading, and controlling. d. They control employees and resources within an organization. e. They only manage large businesses or organizations
e. They only manage large businesses or organizations
Which of the following statements about strategic goals is true? a. They are vague in terms of a time frame to attain. b. They are very specific and detailed. c. They are the same as objectives. d. They generally are established for a time frame of less than 1 year. e. They reflect long-term accomplishments an organization wants to achieve
e. They reflect long-term accomplishments an organization wants to achieve
It's important for partners to spell out the details of their partnership arrangements in writing because__________. a. putting the agreement in writing will limit the liability of each partner to a specified level b. doing so will make it easier to convert the business to a corporation at a later date c. the partnership is not a legally recognized business until the arrangement is in writing d. the law requires these arrangements to be filed with state and federal authorities e. a written agreement will help reduce misunderstandings and disagreements among the partners
e. a written agreement will help reduce misunderstandings and disagreements among the partners
Sheila's door is always open, and what she values most is harmony in the workplace. She excels at empathizing with her workers and maintaining a high morale within her group. Sheila would best be described as a(n) _______ leader. a. democratic b. autocratic c. dictatorial d. visionary e. affiliative
e. affiliative
Oscar works in pharmaceutical sales. His base compensation is fairly low, but it is enhanced with compensation directly tied to his sale results. The incentive-based payments Oscar receives are called_________. a. bonuses b. defined contribution plans c. wages d. salaries e. commissions
e. commissions
Lower-level managers must use interpersonal skills for a variety of reasons in the workplace; however, they do not need to ____________. a. motivate employees b. train workers c. build morale d. support workers in their daily tasks e. communicate with investors
e. communicate with investors
Martin was named "Employee of the Month" for his outstanding customer service. according to Maslow, this award may help satisfy Martins ______ needs. a. physiological b. belonging c. self-actualization d. safety e. esteem
e. esteem
Conditions that could negatively affect a company's competitive capability are called____________. a. extreme circumstances b. tactical nightmares c. internal weaknesses d. unforeseen obstacles e. external threats
e. external threats
When Ford Motor Company formed management groups around areas of specific production, it was using a(n)___________organization structure. a. pyramid b. inverted c. tall d. vertical e. flat
e. flat
Keeping up with technology is________. a. vital professionally, but not personally b. not worth the expense involved c. only relevant if you consider yourself to be tech-savvy d. impossible, since it is changing so rapidly e. important for individuals as well as businesses
e. important for individuals as well as businesses
Profits allow a company to ________. a. lower employee wages b. lowers standards of living for the entire society c. disregard concern about expenses d. reduce its span of operations e. increase productivity
e. increase productivity
Which of the following is NOT a reason that diversity in the workplace has increased? a. advancements in technology throughout the world b. increased number of women entering the workforce c. increased offshoring of work to other countries d. increased number of employees immigrating from other countries e. increased laws mandating hiring of employees of different ethnicities
e. increased laws mandating hiring of employees of different ethnicities
Value-based recruiting and hiring ________. a. results in a workforce that is more dedicated but does not perform well b. is a scientific approach to hiring only those employees that will add the greatest value to the company's bottom line c. is an unethical technique used when companies are trying to improve their image d. has fallen out of favor as firms have become more committed to CSR e. involves attracting and employing people who match the company's corporate values
e. involves attracting and employing people who match the company's corporate values
Ethnocentrism _____________. a. is an inadvertent violation of etiquette b. refers to what is considered beautiful or in good taste c. involves understanding, appreciating, and being sensitive to foreign cultures d. is the complex set of values behaviors, lifestyles, and beliefs of a population e. is a belief that one's own culture is superior to all other cultures
e. is a belief that one's own culture is superior to all other cultures
Mae's Country Kitchen sells out of her cinnamon rolls every morning before 8:30 a.m., and her later customers ask her to make more. The next day, Mae makes an additional two dozen cinnamon rolls and raises the price of an individual cinnamon roll by 50¢. She sells all but one of them. Mae has found the ________ price of her cinnamon rolls. a. demand b. determinant c. surplus d. supply e. market
e. market
A new school of psychology, established by Dr. Martin Seligman of the University of Pennsylvania, addresses the causes of happiness instead of looking into treatments for mental dysfunctions. This area of psychology is called ________. a. evaluative therapy b. moral relativism c. situational ethics d. the happiness factor e. positive psychology
e. positive psychology
A planned economy is one in which ________. a. the production and pricing of goods and services is determined through the operation of a market b. the government distributes some goods and services through selected social programs, and individual income determines purchasing decisions for other goods and services c. individual income ultimately controls purchasing decisions d. individuals and businesses determine the production methods, with a focus on efficiency and productivity e. the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group
e. the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group
Kip, Pedro, and Rico are all employed by the same company but are in different geographical locations while working together on a project. They are part of a __________. a. product team b. physical team c. customer service team d. task force e. virtual team
e. virtual team
phishing
email pretending to be from a bank or trusted source in order to steal your personal information.
On-the-job training
employees learn different skills through the process of performing them
For-profit businesses
entities that offer products to their customers to earn a profit
Home-based
entrepreneurs run their businesses out of their homes
Maintenance, repair, and operating (MRO) products
facilitate production and operations but do not become a part of the finished product
Management Information Systems (MIS)
focuses on applying IT to solve business and economic problems
Corporate (institutional) advertising
focuses on creating a positive image toward a government, an organization, or an entire industry
Action learning
focuses on solving real problems and actual work projects
The future demand for employees is determined in a process called...
forecasting
Employee stock ownership plans
form of defined contribution plan that allow employees to own part of the company without purchasing stock
Congress of Industrial Organizations(CIO)
formed in 1935 to represent entire industries
example of perfect competition
fruits and veggies
General partners
full owners of the business, are responsible for all the day-to-day business decisions, and remain liable for all the debts and obligations of the business
Employee empowerment
giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service
Substitute Goods
goods that can be used in place of other goods
devalue
government decreases its currency
sovereign wealth funds (SWFs)
government investment funds that exists in the year of a trade surplus and investing it
Subsidies
government payments to domestic producers to help them remain competitive against foreign competitors
Securities and Engagement Commission (SEC)
governs the securities industry to ensure that all investors are treated fairly and have the same access to information about companies
Specialized professional services
help support a firm's operations
moral relativism
holds that there is no universal moral truth but only people's individual beliefs, perspectives, and values
behavior
how your relationships reflect your character and beliefs
beliefs
important beliefs you hold and use to make decisions in your life
boycott
in which supporters refuse to buy or handle the company's products or services
small business
independently owned and operated, is not a dominant force in its fields, usually has fewer than 500 employees and has an annual revenue of less than $7 million
Producer price index (PPI)
indicator that tracks the average change in prices from the seller's perspective
international joint venture
involve an international business teaming up with a local partner in order to enter a foreign market
limited partners
involved as investors and are personally liable only up to the amount of their investment in the business and must not actively participate in any decisions of the business
Shareholders have no...
involvement with the direct management of the corporation
Labor
is the human resource that refers to any physical or intellectual work people contribute to a business's production
The intent of dumping...
is to dominate an industry and then control it
Visionary
leaders that are able to inspire others, believe in their own vision, and move people toward a shared dream
fixed exchange rates can be...
manipulated or fixed by governments
Behavioral segmentation
market segmentation based on certain consumer behavior characteristics
Niche marketing
marketing a product to a very narrowly defined set of potential customers
Procurement exchanges
marketplaces where companies can buy and sell goods or services at lower prices
strong dollar
means that the U.S. dollar exchanges for a relatively large amount of foreign currency
weak dollar
means the U.S. dollar exchanges for relatively small amount of foreign currency
productivity
measurement of the quantity of goods and services that human and physical resources can produce in a given period of time
Liability of a limited-liability company (LLC)
members are not personally liable for debts of the LLC
monopoly
occurs when a provider of a service or a good has control of all or nearly all of its market
seasonal unemployment
occurs when a worker gets laid off during the off-season (snow/beach industries)
Peak
occurs when an economic expansion is at its most robust point
Employment agencies
often specialize in specific sectors and provide a screened pool of candidates
Reverse mentoring
older employees often executives are trained by younger ones on how to use technology and on new trends in the market place
Entrepreneurs
people who assume the risk of creating, organizing, and operating a business and direct all the business resources
partners
people who offer the company strengths that the new owner does not possess in turn of share in profits and liabilities
Management development programs
prepare management trainees to become managers within the organization
Americans with Disabilities Act
prohibits discrimination based on disabilities, requires employers to make reasonable accommodations to the known disability of a qualified applicant/employee
Herzberg's Two-Factor Theory
proposed that work satisfaction and dissatisfaction arise from two different factors, hygiene factors and motivators
Simulation training
provides realistic job training in an environment away from the work environment
Click and mortar
refers to B2C businesses that have both an online presence and brick-and-mortar stores
dumping
refers to selling a product at a price below the price charged in the producing country; it is illegal and difficult to prove
Enterprise social networking
refers to the application of products like Facebook in a corporate setting
Aesthetics
refers to what is considered beautiful or in good taste
Example of Judeo-Christian ethics
respecting property and relationships, respecting one's parents, and being kind to others
Management of a partnership
roles specified in partnership agreement; partners generally have equal voice
Decision-making skills
skills in defining problems and selecting the best courses of action
Example of small businesses helping bigger companies
small automotive companies build parts that big companies need
Australia has the least...
small businesses
The U.S has the most...
small businesses
Online analysis package (OLAP)
software application that enables very quick analysis of combinations of different business factors, used for reporting sales, budgeting, and forecasting figures
tactical plans
specifically determine the resources and the actions required to implement particular aspects of a strategic plan
operational plan
specifies of carrying out tactical plans are spelled out
Micropreneurs
start their own business but are satisfied with keeping the business small, have no desire of growing large or hiring hundreds/thousands of employees
Infant industry argument
states that an undeveloped domestic industry needs time to grow and develop in order to acquire a comparative advantage in the global economy
National security argument
states that certain industries critical to national security should be protected from foreign competition
Theory of Comparative Advantage
states that specialization and trade between countries benefit all who are involved
leading indicators
statistics that can be used to help predict how the economy will do in the near future
Expectancy Theory (Vrooms)
suggests an individual's motivation can be described by 3 psychological forces, Motivation = Expectancy * Instrumentality * Valence
Theory Y (McGregor)
suggests that people are naturally motivated and will direct themselves to work for the aims of the organization
prices are based off of
supply and demand
Example of place utility
swimsuit being stocked and displayed at a department store
frictional unemployment
temporary unemployment that results when workers move between jobs, careers, and locations
franchiser
the company that sells a franchise
privatization
the conversion of government-owned production and services to privately owned, profit-seeking enterprises (most communist and socialist government converts to free-market through privatization)
If a company is manufacturing in another country the GDP counts for...
the country its being manufactored in
Consumer preferences
the demand for products can change quickly
Information technology
the design and implementation
Ethics represents...
the guidelines you use to make decisions every day
Total Quality Management (TQM)
the philosophy that everyone in the organization is concerned about quality, throughout all of the firm's activities, to better serve customer needs
Cloud computing
the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer.
Product Differentiation
the process of distinguishing a product or service from others, to make it more attractive to a particular target market
exchange rates
the rates at which currencies are converted into another currency
Larger companies acquire smaller companies for...
their innovativeness
dirty industries
those that have a high risk of pollution, danger to workers, or toxic damage of the environment
Lower-level managers communicate with
those who perform the tasks of the organization
Federal Equal Employment Opportunity
to ensure equality of opportunity by vigorously enforcing federal legislation prohibiting discrimination in employment
Bootstrap financing
when entrepreneurs start a business with little capital; includes personal savings, borrowing from friends and family, trading with vendors or clients
actively disengaged
work in a disruptive manner, are unhappy with the company, combat the efforts of engaged workers
not engaged
work with minimal effort, are indifferent to the company, make little or no contribution to the company
engaged
work with passion, feel connected and obligated to the company, add to the success of the company
The current supply of employees is determined by developing a....
workforce profile
code of conduct
written code of ethics/a statement of their commitment to certain ethical practices
partnership agreement
written document to formalize the relationships among business partners
law of supply
amount supplied will increase as price increases, if price lowers less of the product will be supplied
Product line
A group of similar products marketed to one general market
Generic Brand
A product that has no brand at all
Specialty store
A retail store that carries a wide selection of products in one category
Department store
A retail store that carries a wide variety of products organized by departments
Order getter (aka creative selling)
A salesperson who increases a company's sales by selling to new customers and by increasing sales to existing customers
Example of individual brand
Airpods, iPad, iPod
Example of procurement exchanges
Alibaba.com (site similar to eBay) has a B2B section on their website, it was launched to help Chinese manufacturers sell products to oversea business buyers
Products of Customer Relationship Era
Amazon, Ritz Hotels
Example of online intermediaries
Amazon.com
Brand licensing
An agreement between the owner of a brand and another company who pay royalty for the use of the brand in association with a new product
Specialist
Dedicated and self-starting
Example of damage control
ExxonMobil still suffers from the Exxon Valdez oil spill accident that occurred more than two decades ago
A company with a vertical organization cannot use an inverted organization. True or False
False
A local pizza joint increased its prices, so now you buy pizza elsewhere. Pizza is therefore an inelastic good. True or False
False
A mission statement details the plans of how a company will achieve profitability True or False
False
A social intrapreneur is someone who provides funding for those in Third World countries who want to begin their own businesses but have no capital with which to do so. True or False
False
Autocratic leaders cannot manage large companies effectively True or False
False
Business managers do not need to be aware of the decisions of collective businesses outside their own industry. True or False
False
Trade and investment barriers
Government restrictions that prevent the flow of goods, services, and financial capital across national boundaries
Example of find a new market
Home Depot and Lowe's do-it-yourself training
Example of secondary data
Internal corporate information, trade associations, commercial sources, government data, magazines, newspapers, social media, internet databases, and search engines
duopoly
Only two suppliers exist in an industry or have dominant control
Benefits to autocratic leadership style
Soothes fear by giving clear direction in an emergency
SMARTER stands for
Specific Measurable Acceptable Realistic Timely Extending Rewarding
Example of brokering sites
TD Ameritrade
Taxation of a limited-liability company (LLC)
Taxes as a partnership, although it can elect to be taxed as a corporation
Departure of partners
The partnership agreement should have rules for a partner's exit, this is to prevent the business from liquidation
A significant disadvantage of forming a corporation is the amount of paperwork and reporting it requires True or False
True
A small, privately owned company can be structured as a corporation True or False
True
Globalization poses risks to the U.S. economy because of security and patent protection concerns True or False
True
In effect, ethics are the guidelines you use to make daily decisions. True or False
True
Intrinsic motivators come from a sense of purpose and value in the work employees are doing True or False
True
Population changes are a key determinant of demand for goods and services. True or False
True
Example of a strong dollar
U.S. dollar -> Belize dollar
Example of a weak dollar
U.S. dollar -> Pesos
Example of social media monitoring
UberUV and Brandwatch
amoral behavior
When a person has no sense of right and wrong and no interest in the moral consequences of his or her actions
licensing
an agreement in which the licensor's intangible property (intellectual property) may be sold or made available to a license in exchange for a royalty fee
SWOT Analysis
an analysis of the strengths, weaknesses, opportunities, and threats a company is facing
Example of price expectations
an anticipated lowering of interest rates may indicate a future increase in new housing contracts
Limited partnership...
are limited to their investment
Traci and Rashan have equal liability in their small machine repair shop and share equally in the profits of the business. What type of partnership do they have? a. A limited liability partnership b. A general partnership c. An asset-reduced partnership d. A limited partnership e. A cooperative partnership
b. A general partnership
Rob is a stern leader. His favorite saying is, "It's my way, or the highway!" What type of leader does this behavior fit best? a. An affiliative leader b. An autocratic leader c. A democratic leader d. A laissez faire leader e. A visionary leader
b. An autocratic leader
Arthur is a truck driver who owns his own business. He has been on the road for several months, and the constant wear and tear on his truck results in the need for several major mechanical repairs. This generates a loss for his business. Which of the following reflects how this will affect Arthur's tax obligation a. Arthur's tax obligation will be increased b. Arthur's tax obligation will be reduced c. Arthur's tax obligation will not change at all d. Arthur will not be required to pay his tax obligation e. Arthur gets an automatic extension on paying his tax obligation
b. Arthur's tax obligation will be reduced
Jacob feels like he must be a well-liked member of a group in order to have self-worth. Which level of needs in Maslow's hierarchy of needs does this best reflect? a. Physiological b. Belonging c. Achievement d. Self-actualization e. Safety
b. Belonging
Which of the following statements about small business failure is FALSE? a. Business owners may fail if they do not anticipate necessary personal sacrifices b. Business owners may fail if they take excessive time in creating a business plan c. Business owners may fail if they are not prepared to invest their money and time d. Business owners may fail if they are unable to take on multiple responsibilities e. Business owners may fail if they take on too much debt
b. Business owners may fail if they take excessive time in creating a business plan
Which of the following is a determinant of demand? a. Technology changes b. Changes in income levels c. Price of substitute goods d. Price expectations
b. Changes in income levels
The nation of Baa-Baa raises sheep relatively more efficiently than the nation of Snuggle. Snuggle weaves woolen blankets relatively more effectively than Baa-Baa. Baa-Baa decides to specialize in raising sheep, to sell wool to Snuggle, and to buy blankets from Snuggle. Snuggle decides to specialize in blanket weaving, to sell blankets to Baa-Baa, and to buy wool from Baa-Baa. This international trade illustrates____________. a. International b. Comparative c. Absolute d. Artificial Competitive e. Globalization
b. Comparative
In what way does monopolistic competition favor consumers? a. A single seller or provider ensures consistency of product quality and regulated pricing. b. A large number of sellers providing virtually identical products means that no single seller can set the price. c. A limited number of sellers differentiate their products or services by offering better quality items and/or greater incentives to sellers are likely to purchase item. d. A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices. e. A small number of sellers compete by differentiating their products from one another.
d. A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices.
Small businesses must meet _______ and _________ standards established by the SBA
employee, sales
Example of intrinsic motivators
interests, sense of purpose, and value from work
Socially responsible investing (SRI)
investing only in companies that have met a certain standard of CSR
Advertising is used in the ________ stage to stress product differentiation
maturity
monetary policy
ran by the Federal Reserve System (Fed), it controls the nation's money supply and helps shape the direction of the economy
due diligence
research and analysis of the business to uncover any hidden problems associated with it
In larger companies, officer positions must be...
separate
By agreeing to work for a company, you're saying that...
you agree with its mission and ethics
What are the challenges to national business?
1. Balancing budgets and managing finances 2. Awareness of state laws in many different states 3. Managing longer, more complex supply chains
Challenges of technological changes
1. demands on time and money (capitol) 2. changes to business operations
regional business
Serve a wider area although they do not serve a national or international market
Addison wants her new t-shirt store to be environmentally friendly. With the concept of the green economy in mind, which of the following business initiatives would BEST make her business greener? a. sell t-shirts with environmental slogans b. give a discount to customers who claim to be environmentally conscious c. raise prices to include the cost of a donation to a green nonprofit organization d. mail out paper fliers advertising her business e. install solar panels on her store's roof to provide electricity
e. install solar panels on her store's roof to provide electricity
Financial capitol
refers to money used to facilitate a business enterprise
supply chain
the process by which products, information, and money move between supplier and consumer
What are the benefits of globalization?
1. companies have the opportunity to sell their products around the globe 2. they can lower production costs 3. they can make higher profits
The global nature of businesses increases
1. demand for workers who can communicate with international business partners 2. have up-to-date technological talents 3. can demonstrate excellent communication and creative problem-solving skills 4. posses leadership skills
Which of the following is a current sociocultural trend? a. A decrease in the overall U.S. population b. An increase in the population of Americans ages 30 to 45 years old c. A decrease in the U.S. minority population d. An increase in the population of Americans ages 65 and over
d. An increase in the population of Americans ages 65 and over
The four types of businesses are a. foreign and domestic, large and small b. local, regional, national, and multinational c. private, public, government, and medical d. employee owned, government owned, foreign owned, and bank owned
d. employee owned, government owned, foreign owned, and bank owned
Which of the following BEST describes competition? a. Two or more companies compete with one another to maintain a monopoly b. Two or more companies compete with one another to limit the variety of goods and services c. Two or more companies compete with one another for greater federal, state, and local subsidies d. Two or more companies compete with one another to attract customers and gain an advantage e. Two or more companies compete with one another to influence trade policy
d. Two or more companies compete with one another to attract customers and gain an advantage
Who is legally responsible for protecting the privacy of consumer information that businesses store online? a. Internal Revenue Service b. Social Security Administration c. Internet service providers d. business owners e. consumers
d. business owners
Which of the following are the factors of production? a. Labor, natural resources, capital, entrepreneurs, technology, and intellectual property b. Labor, capital, entrepreneurs, motivations, and good ideas c. Natural resources, entrepreneurs, profits, and creativity d. Labor, profits, natural resources, technology, and motivation
a. Labor, natural resources, capital, entrepreneurs, technology, and intellectual property
The WAWA chain of convivence stores has over 500 locations in five states in the mid-Atlantic region of the United States. WAWA is an example of______. a. a regional business b. a specialty business c. a local business d. a state business e. a national business
a. a regional business
You are managing your own life like a business when you a. consider how your expenses, the social environment, and globalization impact your life b. create an online avatar c. post revealing photos on your Facebook page d. None of the above
a. consider how your expenses, the social environment, and globalization impact your life
A(n)________ is the process by which products, information, and move between supplier and consumer. a. supply chain b. operational flow c. delivery system d. funneling mechanism e. product flow
a. supply chain
Which of the following is NOT a benefit of business competition? a. It may lead to increased customer satisfaction b. It may lead to a limited variety of goods and services c. It may lead to cheaper goods and services d. It may lead to a wider variety of goods and services e. It may lead to higher quality goods and services
b. It may lead to a limited variety of goods and services
Social networking makes it possible for a. companies to better manage their employees b. customers to spread the word about great products c. companies to keep network information secure d. social gatherings to be monitored
b. customers to spread the word about great products
Your life is similar to a small company in that it requires careful planning, precise record keeping, and ___________. a. physical fitness b. an outgoing personality c. openness to change d. a current resume e. a good memory
c. openness to change
